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Vol 27 Issue 11/12

Soccer
Marketing
Guide
Sponsored by
MarketingMix Contents
I 0 2 I Ed’s note I 1 3 I Expert opinion: Nici Stathacopoulos
Nici wonders if anyone knows what direct marketing is
I 0 3 I Media mix beyond 2010 Radio: anymore.

Graham Wilcox
I 1 5 I The future of TV
I 0 4 I Media mix beyond 2010 TV: Marketing Mix chats to The MediaShop’s Virginia Hollis

Peter McKenzie
about the future of TV.

I 0 5 I Media mix beyond 2010 Alternative I 1 7 I Soccer Marketing Guide


Media: Ken Varejes Marketing Mix looks at the world of soccer and its
opportunities, in particular the 2010 FIFA World Cup.

I 0 6 I Media mix beyond 2010 Newspapers:


Ferial Haffajee I 3 6 I Brand Anatomy: MINI
50 years of cool.
I 0 7 I Media mix beyond 2010 Magazines:
Jonathan Harris
I 3 8 I Afrikaans media
A look at what’s available media-wise for the Afrikaans market.
I 0 8 I Media mix beyond 2010 Digital Media:
Matthew Buckland
I 4 2 I Expert opinion: Dr Mornay Roberts-Lombard
I 0 9 I Media mix beyond 2010 Commuter Mornay has a look the untapped pink market.
Media: Kevin Kirby
I 4 3 I Expert opinion: Stuart Woolmington 1
I 1 0 I Media mix beyond 2010 Outdoor:
Stuart looks at Christmas in June.
S’khumbuzo Nkosi

I 1 1 I Day [B]itch I 4 3 I Expert opinion: Will Green


Mlamuli waka Nxele spends a busy week visiting the Will looks at Africa’s online growth opportunities.
country’s cities.

I 4 8 I King III
I 1 2 I Expert opinion: Richard Duncan The latest King III report takes a much closer look at the
Richard compares apples with apples. communications industry – you have been warned!

06 11 24 32
PROPRIETOR AND PUBLISHER: Systems Publishers (Pty) Ltd. Tel: (011) 234 7008 North Block, Bradenham Database:
Hall, Mellis Road, Rivonia, Johannesburg PUBLISHER: Terry Murphy MANAGING EDITOR: Michelle Sturman List Perfect
michelles@systems.co.za EDITOR: Fulvia Becatti fulviab@systems.co.za ADVERTISING MANAGER: Hellen Murahwa
hellenm@systems.co.za PRODUCTION: Spencer van Graan spencerg@systems.co.za EVENT ENQUIRIES: Daisy
Cover picture: courtesy Soccer Laduma Mulenga daisym@systems.co.za SUBSCRIPTION ENQUIRIES: Marianne Nzioki mariannen@systems.co.za

www.marketingmix.co.za 3 292
(Jan-June 09)

vol 27 / issue 11/12 / 2009 marketingmix.co.za


Ed’s note

Pleased to meet you!


’m very honoured at the prospect of working on Marketing

I Mix, after all, the magazine is a legend. I’m also excited to


be working back in print after a two-year stint with SA’s
largest online daily media, marketing and advertising news
website – you know which one I’m talking about.
So I’m here to say hello again to all those familiar faces and
an even bigger hello to those industry experts that I have yet to
meet and work with. I will be in contact with everyone soon to
say hi, swap ideas and move the magazine onwards and
upwards. My first issue is already brimming with useful infor-
mation, helpful tips and amazing ideas – all of which you can
think about while on your holiday. I don’t even mind if you get
sand stuck between the pages while you read it on the beach.
In this issue, Marketing Mix hosted a breakfast with Mervyn
King (yes, the man himself) for the marketing fraternity about
what to expect in the latest King report (page 48). The King III
Report escalates communicators to strategic level and requires
2 businesses to take stakeholder relations seriously.
The report requires that promotion documents be written
fairly, and marketing material promises to be fair, just and be
understood by ordinary customers. Internal marketing and
motivating staff is also vital, workers are supposed to live up to
standards set by the company’s governing codes. And this is
just for starters!
With the 2010 FIFA World Cup on our doorstep, we
thought it prudent to look at the soccer marketing
opportunities that exist in the run-up to the tournament – yes,
there are still ways to get involved, believe it or not.
There’s an important article (page 46), seeing it’s the end
of the year, which brings forth all those glorious parties –
information on liquor marketing in light of impending
legislation and how it will affect liquor marketing at-retail,
in particular.
Happy holidays, don’t drink and drive so you can Arrive
Alive. 

marketingmix.co.za / vol 27 / issue 11/12 / 2009


Media mix beyond 2010

Atoms by bytes –
anarchy beyond 2010
By Graham Willcock, managing director, RadMark

ew media breaks down the rules we know and understand

N about the way life and, appropriate to this forum,


traditional media economies work. New media is
dangerous in its surreptitious guise of making our lives easier. You
can have whatever you want, any time you want, wherever you
want and what’s that – you don’t want to pay for it?
New media encourages the surrender of privacy on the altar of
social networking. It also threatens democracy as autonomy is
compromised, and a vigilant and watchful press is replaced by
the inane nature of the blogosphere where all semblance of
accountability disappears into a virtual mist of user-generated
content. That sounds like anarchy to me. And anarchy breeds more
uncertainty. In the media world you can almost smell the fear.
As our uncertainty over new media increases so too does our 3
need for reassurance, which manifests itself in another contradiction.
We act and speak as if a peaceful coexistence between the new
and the old is possible. But we don’t really believe it do we? We
wonder if on-air personalities can make the transition from being
a ‘voice’ to a multimedia content manager able to articulate
themselves in their blog or on Twitter, without compromising their
carefully crafted on-air persona. We wonder how to continue
running a media infrastructure when traditional ad revenue is
disappearing into the void of search words and Google ads, and
where the black magic of Search Engine Optimisation (SEO)
simply underpins the loss of autonomy that threatens democracy. Apple’s acknowledgement that its consumer base wants radio
We are left with the realisation that we are possibly looking at a receivership built into an iPod improves the prospects of traditional
stark choice: You can have new media or traditional but you can’t and new media in peaceful coexistence. It also acknowledges that
have both. You can’t continue to produce good quality content radio will continue to play a role in the breaking of new music,
without the revenue to support it. You simply cannot, as a breaking news and breaking the monotony of always having to
traditional media owner, lose control of the distribution interface think for yourself which song you want to listen to next. DAB
because if you do you lose power and influence, and become (PVR for radio) will arrive sometime with the digitisation of the
subservient to a far larger third-party distribution network. radio spectrum and Internet radio will allow for ever greater
But peaceful coexistence must prevail if autonomy and privacy niche sites.
are to be protected; if democracy is to be sustainable, new media Finally, how should traditional media handle the revenue gap?
cannot replace the traditional. That means 20 years from now, New media may be ideal for need satisfaction but it does not hold a
people will still be listening to their favourite radio station, will great deal of promise for need generation. If need generation
read their favourite magazine or newspaper, and watch their depends on branding then traditional media will continue to offer
favourite sitcom on TV. But they will do this all within an incredibly the best opportunity for the development of brand equity.
connected media universe in which content moulds with form, and Innovation in traditional media will need to place a premium along a
a multiplicity of media formats seamlessly complement one another continuum of value. As audiences have more choice so they will
and allow for greater personalisation and locality. become more discerning and with discernment comes a willingness
Some will find it easier than others. Radio lends itself to a to pay good money for good content. But equally so, Africa
parallel and complementary relationship with other media types. continues to offer real and meaningful traditional media opportunities
And, as radio will remain pervasive rather than invasive, so it will in all media types but specifically analogue radio, free-to-air TV
enable Web-based and mobi interfaces. MP3 players and iPods will and outdoor. The aggregation of audiences across both new and
not bring about the demise of radio any more than a digitised and traditional media types will present additional revenue opportunities
‘paperless world’ heralded the demise of the paper industry. as will the youth market. 

vol 27 / issue 11/12 / 2009 marketingmix.co.za


Media mix beyond 2010

How will the TV landscape in SA


evolve in 2010 (and beyond)?
By Peter McKenzie, managing director, Oracle Airtime Sales (OATS)

elevision is on the brink of enormous transformation that

T will, I believe, fundamentally change the whole process of


media planning and buying in the medium to long term. In
this sense, I see 2010 as a watershed year – and for good measure,
we’ll have the FIFA World Cup right here in our own backyard.
Along with the World Cup, the anticipated launch of digital
terrestrial TV (DTT) in April 2010 will mark the start of the digital
migration process – probably the single biggest change to SA’s
broadcast landscape since television started in 1976. The regulatory
framework is in the process of being finalised and the timelines for
migration are much debated – but the imminent arrival of DTT
is a reality.
For both viewers and advertisers this means greater channel
4 choice – at least 10 new digital channels in the short term – to
supplement the existing line-up of SABC1, 2, and 3, e.tv and
M-Net which will continue to be broadcast in both analogue and
digital. Then there is the major challenge of adequately measuring
audiences on these new channels.
And let’s not forget that 2010 also promises the launch of
additional pay-TV operators to compete with MultiChoice and DStv.
We’ll also see the continued steady growth in the penetration of
PVR decoders, further roll-out of high-definition channels, the How will the 2010 FIFA World Cup impact on pricing, schedules
introduction of video-on-demand services and television services and audiences? What happens after the World Cup?
on your mobile phone. Major sporting events have the capacity to boost audiences
significantly and alter normal adspend patterns – but obviously the
How will this evolution impact on marketing and advertising? World Cup in SA will be in a different league. We expect the event to
The biggest challenge will be dealing with the huge fragmentation in draw strong advertising support and the tournament and related content
audiences and the industry’s ability to measure this plethora of will pull ad revenue from other channels and programme genres.
channels – in addition to measuring time-shifted viewing through With 63 matches in the space of a month, audiences are bound to
the PVR, video-on-demand, viewing on mobile phones and out-of- be dramatically different, but equally, many channels will counter-
home viewing. schedule against the soccer and this will present good opportunities
I think the conventional approach to planning on television has for marketers who decide to stay out of the World Cup fray and
to change with all of this choice and fragmentation. Marketers, media what some may perceive as a cluttered ad environment.
agencies and broadcasters will have to jointly develop new trading I expect to see normal adspend patterns change with increased
models and I expect greater accountability to be key to this. investment in the run-up to the event and during the tournament
itself. I also anticipate a distinct lull in adspend for a month or so
How can marketers and advertisers prepare? after the final. This view is supported by analysis of the previous
Marketers, advertisers and their agencies need to know and under- World Cups in Germany and Japan/Korea.
stand what this change will bring and anticipate the impact in their Ad rates in premium content – and specifically in this World Cup,
planning. Education and good communication are a prerequisite in which is likely to deliver massive audiences – will obviously
the process. command a premium price. But equally, outside of soccer, I think
Collectively, the industry has to be prepared to invest more in there will be lots of bargains to be had.
research and ensure that there is sufficient funding for SAARF. It
must be remembered that 2010 will also see the awarding of the How to get the most out of TV advertising opportunities?
next TAMS contract and we must ensure the tender process antici- Keep an open mind, embrace the change and be prepared to experiment.
pates the future needs of the industry – and provides the resources In our case, we want to be involved in the planning process and in
to pay for it. creating unique opportunities – we see it as a partnership. 

marketingmix.co.za / vol 27 / issue 11/12 / 2009


Media mix beyond 2010

Evolution of alternative media


in South Africa
By Ken Varejes, CEO, Primedia Unlimited

efining alternative media certainly is a challenge. The word

D ‘alternative’, in my mind, lends it the impression of being


the third cousin in the media mix or that it should only be
considered after mainstream media. New media, as I like to refer to
it, should always be considered for the media schedule because it is
highly adaptable to the ever-changing consumer landscape.
The traditional platforms, generally consumed in the home,
worked effectively as standalones 30 years ago, but things are very
different now. Innovation has transformed the world dramatically.
For a start, people are more gregarious than ever before and don’t
stay at home to entertain themselves. And with transport being far
more accessible than ever before, it’s easy for the average Joe to get
to new destinations and environments.
Media should be about captivating individuals while they are
engaged in their day-to-day activities, during those intervals when 5
they have the time to absorb the message (which at its best should
be consistent and impactful). Enter new media, which does exactly
this, and which accommodates the changes constantly taking place
in the media and advertising environment. What’s more, it offers
options for clients that don’t have the money to invest in TV
commercials. In many instances, new media also offer exclusivity,
enabling advertisers to dominate space away from competing
brands. The cost/value equation then becomes key.
It is absolutely true that new media depends entirely on innovation
and creativity to drive its growth and its adoption by media
agencies and clients. However, new media cannot be fly-by-night.
The best performing media are those that are tried and tested.
When it comes to alternative and ambient media, we see great
creative once-offs in international spaces, yet these are not consistent and this platform will grow rapidly. Mobile advertising will also
offerings. South African advertisers call for these types of innovations, burgeon but it will be compromised by the invasive factor which is
but don’t immediately jump on great new opportunities. I can becoming a reality: we are constantly having media pushed at us and
quote great examples of existing media types like bus shelter there will ultimately be a backlash. Consumer engagement will
advertising which allows wacky creative executions that will stand come down to how this is handled; people opt-out of your
above the shelter, but clients shy away, often falling back to the messaging if they see it has become an advertising platform that
more conservative offerings. A further example is how long it overshadows their reasons for opting-in.
initially took for clients to buy in to the building wrap advertising A key development will be media that does good for people in
concept, which they initially saw as expensive when compared to the process of driving a brand. A great example of this are the Play
the 18sqm billboards on the sides of the road. Clients now clamour Parks that Wideopen Platform developed for Simba’s Ready Steady
for the medium, even though it is significantly more expensive on Go brand which sit in key parks in Gauteng.
sheer rate but significantly lower when comparing cost per In the near future, there will be limited increases in rates and
square metre. Consider too, washroom advertising, which now inflation. If one looks at the increase in media spend in Germany
includes entire washroom wraps. This is cool stuff yet brands are over the World Cup period, one finds that – surprisingly, perhaps –
still nervous to step out of the mould until the first brand takes year-on-year media spend only increased by inflation with no
the initiative. surges! Brands held back and spent more at one time.
The ICC Champions Trophy, as an example, spent the majority Over this year, the trend has been much the same. Most local
of its marketing budget on alternative media (new media), and is advertisers have taken advantage of the depressed economy and
regarded as one of the most successful campaigns we have seen in SA. negotiated rates upfront. So, all in all, the 2010 FIFA World Cup will
Looking ahead to 2010, mall advertising is a fledgling business not create the whirlwind that many in the advertising industry expect. 

vol 27 / issue 11/12 / 2009 marketingmix.co.za


Media mix beyond 2010

Newspapers and beyond


By Ferial Haffajee, editor in chief, City Press

very morning when I get to work at MediaPark in Auckland

E Park, Johannesburg, people fill the reception lounge suites.


Obviously, working people, some look beaten up by the
world and older than their years.
They glance at the Afrikaans daily Beeld or The Star that sit on
the coffee tables and grab the Daily Sun. These are Daily Sun
readers, the paper’s mascot of which is the man in the blue overalls,
here to ask advice from the newspaper or to tell their stories. Daily
Sun breaks every rule of journalism that I’ve been taught. Neither
objective nor balanced, it campaigns against a variety of causes be it
the dysfunction of the Home Affairs Department, foreigners living
illegally in SA (‘aliens’ in Sun patois) and against crime.
It has reporters in corners of the country that the rest of the
mass media long ago gave up on as it clung, koala bear bear-like, to
the wealthy urban centres. The people who come to sit at Media
Park every morning are ‘Sun People’ for whom the paper is more
than just a newspaper – it is a friend, a community and it is local
power in a political set-up that allows very little local democracy.
In a corner of the foyer sits a man whose job it is to give advice
6 to Sun readers while Mr. Fixit vans drive in and out of our car-park
– a home maintenance unit that goes out to Sun readers.
The Sun has redefined SA newspapers forcing those at older
newspapers to sit up and take notice. In Cape Town, the Daily
Voice is doing the same thing. The Independent Group-owned
newspaper writes in a language defined by the Cape Flats. It has
thrown every single grammatical rule out of the window and
speaks in the rough blend of English, Afrikaans and tsotsi taal that
is the language of the Flats. It’s got the same rough, straight-talking
attitude as the other side of Table Mountain and readers have
flocked to it, abandoning the sombre broadsheets.
Tabloids are the big news in local newspapers and they ensure
that print is still alive and well in SA. Nimble, rooted, risqué, we in
the broadsheets should tear a sheet out of their papers if we are to
continue along a growth trajectory. and edit well, we can build excellent sites that break news and
Like them, we need to stop seeing ourselves as newspapers alone protect quality journalism. TimesLive, the online form of The Times
though our trajectory is somewhat different to becoming service and Sunday Times as well as M&G Online are trailblazers here.
providers and advice centres. The greatest threat to media freedom is not an avaricious ruling
For one, to survive, we have to get out of Johannesburg, Cape party but the decline in the depth of our journalism.
Town and Durban into the dorps and heartbeat of the country and Old-fashioned newsrooms are still a bastion of good
to be relevant to its needs. old-fashioned reporting through which people in power are kept on
As newspapers move up the living standard measure, we have to their toes and readers are given the information they need to make
stop viewing ourselves as newspapers because we have to be decisions. Readers follow talent so those newspapers that continue
producers of excellent journalism that is presented on different to invest in and grow their own timber will continue to grow and
platforms, including online and mobile. those that don’t wont.
While 2009 promised to be the year of broadband, the
greenshoots only appeared at the end of the year and perhaps 2010 Five newspaper trends I am watching in 2010:
will bring the promise of cheap broadband. That means the media
revolution will accelerate and newspapers will begin to go into  Daily Sun goes mobile
decline as the centrepieces of media companies.  Moving blogs into print
Without good websites to build reader communities and  New investigation units at Media24 and Independent Newspapers
interesting mobile iterations, newspapers will enter their museum  Staff and management buyout of Independent Newspapers
phase. But the Internet, a revolutionary 40-year old innovation, is  My race for Sunday with my brothers Mondli Makhanya at the
filled with brilliance and also with almost infinite junk. If we curate Sunday Times and Makhudu Sefara at the Sunday Independent. 

marketingmix.co.za / vol 27 / issue 11/12 / 2009


Media mix beyond 2010

Beyond magazines
By Jonathan Harris, publisher, Thought24

hy some magazine publishers will rule the world… and

W how marketers can spot the ones that might. Magazine


publishers run complex businesses that do something
pretty hard to get right, they entice a person to read, and do it so
well they love the experience and repeat the cycle over and over
again.
The next few years are going to be the real game changers for the
industry and how effective publishers are at making the right calls
is going to directly impact returns for marketers. Those that aren’t
rethinking everything they do will not make it into the new media
future.
If publishers leverage the uniquely complex intellectual property
they own about information gathering, filtering and delivery, and
innovate around it both off and online, they will survive and thrive
in 2010 and beyond.
The litmus test for current innovation marketers should apply, is
to ask publishers why they are online. Only do this if their online
strategy doesn’t involve Facebook or Twitter, because then they
don’t have a strategy. Most probably they won’t tell you about the 7
fundamental need they have identified and are now fulfilling or the
unique value add they are bringing to their offline readers, but
more likely they’ll say that’s where we thought you and your ad
money were going.
The future for publishers hinges on a need for a fundamental
shift in the predominantly passive relationship they have with
technology and how people are changing the way they use
information and then consume brands.
Strategies must become more aggressive, for example, about how
vertical the offline and online experience becomes, what information works is a special kind of information intelligence marketers need to
publishers use to drive this and how they increase their potential to get access to.
influence it. This will require measurable returns redefining the way Building technology – it’s easier than you think. Publishers
publishers are benchmarked. Publishers must look to developing willingly handed over readers to the Internet and then found
their accountability model, combining cost per thousand with a themselves reconsidering their future. They have forgotten that
cost per engagement measure spanning both offline and online, a building relationships is harder than building technology, so identify
tough challenge but an inevitable one. publishers that hire technology people, collaborate with them or
Information in the future will form measurable streams of buy their companies. Those that stay ahead of the technology curve
personalised content constantly adjusting based on need. Publishers will drive marketers’ ROI up and offer unique and creative ways for
must define their role and then help marketers to become a part of brands to form part of the information stream.
that stream. Future big media players and the ones marketers Research driven – no business on the planet knows or is able to
should be talking to now will establish a new media model with the predict more about consumer behaviour than a publisher. How
understanding that consumers have access to more information interactions and experiences influence attitudes, perceptions and
than they can consume and that playing a role in the delivery of beliefs, that in turn drive engagement and ultimately impact
only the most relevant and targeted content is going to become consumer behaviour is not only a publisher’s business but they also
more important. have meaningful influence over the whole process. Publishers
Growth and increasing returns for marketers will come from investing in research about their consumers, their brands and those
smart publishers regardless of genre. Those to watch out for are: of their advertisers in a world where the need for the feedback loop
Redefining what they do – they are not in the business of to be increasingly complete are the ones that will add value to
publishing but rather information intelligence. Those that are marketers today and shape consumer relationships in the future.
simply uploading more content to the Web won’t make Not every publisher can rule the world but the ones that lead the
themselves or their advertisers rich but the ones shaping kind of fundamental change needed in this industry over the next
information streams and how they are consumed might. five years might just make the shortlist, make sure you pick the
Understanding how the relationship between offline and online winners. 

vol 27 / issue 11/12 / 2009 marketingmix.co.za


Media mix beyond 2010

Digital media: we’re ready for it


Matthew Buckland, founder and head of 20fourlabs

Marketing Mix: How do you define digital media? Does it


include mobile, or is it just online?
Matthew Buckland: Any information that is transmitted via
binary is digital. Digital media generally these days refers to news
and information transmitted over the Net, regardless of the
medium or device.

MM: What is the current state of the digital media landscape in


SA? How do we compare to the US and Europe, and what does
this mean for media and marketing/advertising?
MB: SA is an underachiever when it comes to the Internet. We
should be bigger than we are. For Web usage: we languish at number
42 in the world. We’re not even the biggest Internet country in
Africa. We’re ranked fourth behind Nigeria, Egypt and Morocco –
this, despite having an economy four times the size of our nearest
rival, Egypt. But we’re also sometimes too hard on ourselves: We
have double the amount of Internet users than developed countries
like Ireland. We’re on a par with Switzerland, Austria, Sweden and
Denmark. What I’m saying is that this is a significant market. But
8 it’s a market we know we could be doing much better in.

MM: What role is digital media playing in marketing and MB: Brands should not merely be focused on ‘traditional’ online
advertising? Where does it fit in? advertising as a model to reach consumers when they approach the
MB: Digital media is one of the many ways to reach consumers’ Net. They need a holistic view which may encompass social media
hearts, minds and pockets. It’s particularly effective at targeting campaigns, viral e-mail campaigns, content creation, SEO and even
professional individuals and is highly engaging and measurable as Web development/site creation. These are all ways to ensure your
an interactive medium. brand gets out there and is noticed.

MM: Digital media is said to be a growing industry locally: MM: Social media is a hot topic – your thoughts on whether it
where do you think most of the growth will come from? has real value as a marketing/advertising tool?
Where should marketers/advertisers be investing to see the best MB: Social media hold tremendous value for brands. Like in any
long-term returns? early industry, there’s quite a bit of snake oil around. Marketers
MB: It’s become somewhat of a cliche to talk about the tremendous should be wary of the hype and stick to their core values and
promise and potential of the mobile Web, but this really is the principles when approaching social media campaigns.
mass digital medium of the future. The advertising model here is On a social media platform, be authentic, personable and add real
still crude and needs to evolve. Some mobile sites are reaching big value. People don’t want to interact with banks on Facebook and
audiences – it’s just a matter of time. Twitter, they want to speak to people at those banks – find a way to
do this.
MM: How will an event like the 2010 FIFA World Cup impact
on the digital landscape in SA? What can we expect? How will MM: What about digital media and innovation – what’s the link?
pricing, audiences, etc be impacted? And how can brands tap into this?
MB: FIFA is a demanding organisation that tolerates nothing but MB: By its nature, digital media is evolving fast. If you don’t
the best. It’s already implemented innovations such as wireless innovate, the bus will pass you by on the information highway.
broadband at stadiums.
MM: What is the digital media landscape going to look like in the
MM: Are there any recent developments in the digital media next 12 months? Who is going to be online, and how? What will
world that you think are going to have a positive impact for happen to brands that are not digital savvy?
marketers/advertisers? MB: I’d rather look at a five-year period. Five years ago the industry
MB: The unrelenting march of the mobile platform. was practically unrecognisable from what it is now with blogging,
Facebook, Twitter, You Tube. In five years’ time I doubt it will be
MM: Which are the top five digital platforms or tools, that you the same too. I suspect brands that are not digital savvy will find
think local brands need to start familiarising themselves with their medium-term positions eroded. It all depends on the brand’s
(if they have not already done so)? target market and what its competitors are doing in this space. 

marketingmix.co.za / vol 27 / issue 11/12 / 2009


Media mix beyond 2010

Commuter media:
ever changing
By Kevin Kirby, chief operating officer, ComutaNet

or the past few years SA has experienced significant changes

F in terms of transportation and the upgrading of commuter


hubs. Many of these structures have been rebuilt into modern
facilities which has allowed for the formalisation of old improvised
ranks. In addition to this, as South Africans, we have also seen the
emergence of specific commuter modes. In Gauteng we have seen
the advent of the Business Train, BRT, Pretoria to Johannesburg
buses. There is also the forthcoming Gautrain. This changing
landscape has left the commuter industry with many long-lasting
changes that are set to have a profound impact on the way
companies market to this segment of the market.
As a result, there are many new opportunities for companies in
terms of new ‘canvas’ platforms where advertising can be placed.
Marketers now have the opportunity to take advantage of this
situation and ‘own’ different new media options. These new options 9
allow for a digital advertising space to emerge regarding out-of-home
(OOH) media. Internationally, the concept of a digital OOH
landscape has largely been accepted and widely adopted by the
industry successfully featuring in places such as airports, and on bus
shelters, buses and taxis. Research into what consumers react to has
resulted in the birth of the digital age, with more consumers
responding positively to moving billboards than to the static
traditional mediums.
With this media landscape in mind the future of the local
commuter and the commuter market is set to change quite
significantly over the next two years. The addition of new modes of change their spending patterns, the use of sampling and
transport and upgrading of facilities means that more upper LSM face-to-face methods are vital as they do not have the propensity
consumers may be encouraged to use public transport. This for spontaneous trial and error
government initiative to provide South Africans with safe, accessible  Value-for-money propositions are more important than discounting
public transport will have a positive impact on the commuter or cheap alternatives
transport industry. Investing in public transport infrastructure has  To understand the commuter, you need to immerse yourself in
been emphasised at national, provincial and municipal level as an the environment. The best insights are obtained by experiencing
aspect that requires immediate attention. Thus, with public what the commuter experiences on a daily basis.
transport becoming a more accessible and cheaper alternative,
combined with rising living costs, the stigma associated with public To invest in this market wisely, marketers need to understand that
transport being used by only bottom-of-the-pyramid consumers has the various media types available offer the ability to interact with
become somewhat of a white elephant. Gone are the days of race different segments of the consumer market as well as allow the
and ethnicity label consumer behaviour and buying patterns. ability to run campaigns varying from brand building to price and
In the face of this ever-changing environment, marketers need to product promotions.
prepare for these changes and the best way to do so is through A popular topic at the moment and one that has greatly impacted
constant research. According to a recent study conducted by Freshly the way marketers think is the anticipated effect the 2010 FIFA
Ground Insights, a few key market insights were gained about what World Cup will have on the commuter marketing media landscape.
to keep in mind when marketing to the South African commuter: Certain media types, such as airport buses and cabs will certainly
 Partner with people who understand the market enjoy some additional attention. But, I do not believe that in view
 Don’t underestimate the spending power and sophistication of of the current public commuter setup there will be any significant
the market upswing here. I think also that many ongoing marketing campaigns
 Commuters are extremely brand loyal. Should you wish to may be nervous of World Cup clutter. 

vol 27 / issue 11/12 / 2009 marketingmix.co.za


Media mix beyond 2010

The remarkable outdoor advertising evolution


By S’khumbuzo Nkosi, CEO, Primedia Outdoor

istorically, and in its traditional form, outdoor advertising

H has been leveraged by marketers to reach middle- to


lower-income audiences in urban townships, peri-urban
areas and rural settlements, especially along stadia, transport nodes
and reserves.
Post 1991, and aligned with SA’s democratisation process,
outdoor advertising exploded into more affluent communities,
providing marketers with new upper-end audiences. Johannesburg,
at the forefront of innovation in these markets, approved innovative
new media platforms, including illuminated spectacular billboards,
LEDs, 3D and product placement on billboards.
Until recently, the strong growth in outdoor advertising has
been underpinned by new market opportunities and globally
competitive innovation. Although outdoor’s market share grew
from three per cent (in the 1990s) to five per cent in 2006, it has
retreated to 4.3 per cent on the back of the global recession.
Today, and probably as an ongoing reformed standpoint,
outdoor advertising is unlikely to be confined to billboard space in
the traditional format, but will become integral to out-of-home
media through a plethora of innovative formats and new media.
Audience fragmentation, speed to market, flexibility and qualitative
10 research tools measuring media ROI will drive outdoor growth and
accountability. Post the 2010 FIFA World Cup, the pace will falter
before growing market share as an out of home, rather than an
outdoor, media platform.
The increasing mobility of growing middle-class audiences and
beneficial public transport infrastructure developments offer
excellent growth prospects for the out-of-home sector. In light of
this, out-of-home audience solutions, broader than, but including
billboard marketing in its ambit, will be the way of the future. utilise current, extensively used, campaign-noting and effectiveness
With these growth opportunities in mind, it must be stressed research tools.
that the absence of an outdoor measurement tool does injustice to Coming off a soft 18 months, the market will set new rates ahead
a largely cost-effective medium. To correct this inadequacy, the of the 2010 FIFA World Cup. Given FIFA’s marketing regulations,
outdoor industry in partnership with SAARF and AC Nielsen, is enforceable in all major host cities and on key routes, the industry
close to launching an outdoor measurement tool comparable to will take a pragmatic market opportunity position to ensure that it
other traditional mediums such as TV, radio and print. doesn’t hurt loyal clients but, at the same time, capitalises on the
Over the past five years, outdoor’s media inflation has commercial opportunities presented by this once-off opportunity.
consistently averaged below ‘All Media’ inflation. The outdoor Certain formats and locations will attract premiums, as driven by
industry is firm in its assertion that certain markets and formats are market demand. It is certain SA will host visitors/audiences to
undervalued – particularly in view of the extensive reach and match the adspend investment in the World Cup.
frequency achieved. The introduction of an outdoor research Good outdoor creativity is based on simplicity, brand equity,
tool will insert this inherent value into audience perspectives and colour contrast and legibility. It must be engaging, bold in size and
drive accountability. short in copy. In addition to these traits, great outdoor creativity
The broader outdoor industry has organised itself under the and execution, and locations generating exceptional environment
auspices of the Out of Home Media Association of South Africa responses are elements media planners and marketers should
(OHMSA), a self-regulatory body representing about 80 per cent consider essential. Striking creative and worthy innovation should
of outdoor spend. One of the association’s core objectives is to completely overcome and eliminate clutter.
build and promote the credibility of the outdoor medium to all Leading up to 2010 and beyond, marketers should be investing in
stakeholders to grow market share responsibly. out-of-home media solutions that can demonstrate both delivery of
The methodology and research tool under local development desired target audiences and response to the communication
has built-in factors and elements that will qualify the ‘opportunity- strategy. This may require collaboration and synergies with
to-see’ measurement. Local conditions and the environment, other effective media platforms. With audience fragmentation
coupled with outdoor format types, should be factored into the on the rise, media integration or collaboration will underpin
development of ‘opportunity-to-see’ formulae. In combination effective reach and frequency of out-of-home audiences, especially
with the new research tool, many industry players will continue to in urban markets. 

marketingmix.co.za / vol 27 / issue 11/12 / 2009


7 day [B]itch

Mlamuli waka Nxele


general manager, Commercial
Division, Ilanga News
19/10/2009 some urgent escapism so I book
I’m waiting for the 6am flight from Durban an early evening movie.
to Johannesburg sitting in the airport
lounge, black coffee in hand and paging 22/10/2009
through the mock-up of the new look Ilanga I’m taking my roadshow to
that I’m going to present to big agencies and some agencies in Cape Town.
clients. I use my time on the flight to read The cleverly scripted
the research report. Kulula in-flight
When I arrive OR Tambo International announcements have me
Airport (ORT) is abuzz with business in stitches.
travellers. The long queue at the Avis counter Upon arriving I meet with
makes me think how convenient it’ll be to the Ads24 team and take
land at OR Tambo, jump onto the Gautrain them through the revamped
and be in Sandton in 10 minutes! Ilanga. Everyone is
Arrive at Ads24 an hour later, and we excited. I’m encouraged.
present to three agencies and one directly to The Ads24 team take
the client. The response to the new the look me to another agency
Ilanga is overwhelmingly positive. After where I meet a long
heading to the B&B, replying to e-mails and lost friend who offers a
returning calls, I freshen up, put on my sundowner and a catch 11
Sunday best to attend the GQ Best Dressed up. I relax at a calm,
Men Awards. I reminisce with Yfm’s DJ Sbu cosy tranquil B&B
about our days at Ukhozi FM. at the foot of the
mountain. I squeeze
20/10/2009 in a read of our
I wake up to an exceptionally good breakfast holding company’s
at the B&B! I’ve got four presentations lined annual report then
up and I get through my first presentation. end my day with a
My plan to forgo PowerPoint slides works blissful dinner at a
like a charm. At the second meeting, I get friend’s place down the road.
tangled in debate about an ad for traditional invited to sit in a briefing session for an
medicine in the mock-up of Ilanga. I discover 23/10/2009 outdoor media supplier. The supplier gets
that there are still serious misconceptions Still in Cape Town, I take an early morning really persuasive about how outdoor
about the cultural lifestyles of black people. walk and enjoy an outdoor breakfast. Then ‘outsizes and outshines’ print. The rest of
After the last presentation the traffic out of I’m back at Ads24 fielding interesting the day is spent on correspondence and
Sunninghill to the N3 is spectacularly thick. questions from Media24 colleagues and admin for the launch.
Two and half hours later I arrive at ORT. we’re off to present to a big agency.
When is the Gautrain coming? I learn that there is a media guru in the 28/10/09
audience and we must be very pleased if we I can’t finish my usual 10km run because
21/10/2009 get good feedback from him – and we do! of stomach cramps. But I end up running
Back in Durban, my day starts with a But my delight is short lived. Two for the rest of the day. I’m late for my 8am
bruising session to review the budget for the cancellations later and I have no luck weekly circulation meeting. I get to see the
marketing that supports our launch of the catching an earlier flight back to Durban; I first creative for the launch campaign; it’s
new Ilanga. No bells and whistles – just the tweet about my dilemma and a childhood looking good. A few tweaks here and there.
elements driving awareness and circulation friend gets in touch. We have a good meal I love a creative showcase that emphasises
get a tick and a laugh reminiscing about growing driving business objectives.
Then my day gets an unexpected lift; a up herding cattle and goats in the lush I meet with Ilanga’s MD about the
publisher of a high-end magazine is receptive mountains of the KZN Midlands. partnership with the high-end magazine
to our advances for a partnership with their and he asks some tough questions, but in
company’s online portal. They request a 26/10/09 the end we find consensus.
meeting. For the rest of the day I immerse I’m in Durban and back in my routine. A As I finish my day, I remember someone
myself in figures, sales performance, forecasts large retailer that we have been courting for offered me a ticket to see This Is It. I love
and paper sales. What I see necessitates a while is trying out Ilanga. Then I’m Michael Jackson. 

vol 27 / issue 11/12 / 2009 marketingmix.co.za


Expert opinion

Comparing apples
with apples
Can one bad apple ruin an entire shipment? Some
would say not, but I would beg to differ.

he growth of Apple has been more persisted. The plain truth is that it isn’t right to

T than impressive and meteoric in its


nature. From the humble beginnings of
the Mac Classic two decades ago, to the more
see your iMac without its face and body. It’s
like seeing Terminator without its body armour
or witnessing your child’s birth from the
recent array of Macbooks and the iMac, the business end of the delivery table!
growth in popularity of this enigmatic brand Until then I had happily lived in the world of
and technology icon has been nothing short romantic illusion that surrounds this giant
of astounding. among giants. I must confess that I could see it
Not only has the presence of these doing no wrong, but I have now seen their
distinctive machines literally spread like a warts, fillings and failings and am left deeply
virus throughout the business world, but the disheartened. Make one call to their call centre
ownership figures of Macs in the home are and you’ll be impressed; after the third, fourth
12 mind blowing. Fanned by a noticeable or even the fifth call, you grow tired of the
presence in most blockbuster movies, the same repetitive questions from their people, the
iconic illuminated white apple has shone long waits and successive platitudes. Every new
directly into our living rooms across literally call centre agent brings with them ‘Ground Hog
millions of flat screens. This, at a time when Day’, and it feels that you have to start the story
the music industry has been revolutionised by all over again! The 10-minute wait to speak to them
Apple’s iPod and the mobile phone industry after being cut off doesn’t help much either.
invaded by the groundbreaking iPhone. The imagery I had previously associated
I am in awe of this brand and its founder with them, of freshness, simplicity, speed,
Steve Jobs. I have been so enamoured by this commonsense and perfection has been replaced
brand that I have purchased two Macbooks, by a general lack of confidence which has since
one iPhone, several iPods, countless software reverberated across all their products to such an
products and accessories and, more recently, extent that I am starting to spot potential
one of its bigger iMacs. Not withstanding the pitfalls and problems in the other products I
odd technical honeymoon hitch with the own. It just goes to show that no-one at the top
iPhone, my marriage to this King of brands is far from the bottom, nor is anyone exempt
has been extremely enjoyable. Up until now from the backlash of customer disappointment.
that is. Recently, it has become clear to me I will probably just have to console myself that
that my honeymoon with this brand has sadly they are better than most, and thus the best
come to an end. choice out of what is otherwise sometimes a
Don’t get me wrong; I still love Apple and bad bunch. The measure of their recovery, and
its products and I plan to continue using each also of their brand strength will be in the manner
and every one of those that I own and will in which they attend to my concerns and
probably buy many others in the future. That complaints over the next few days and weeks.
said, whereas I was the blushing giggling bride Hopefully, I will come through the
before, now I am the cynical, critical and highly wilderness with a renewed sense of faith in
suspicious once bitten, twice shy partner. them, that they shall once again become the
It didn’t help that with my own eyes I apple of my eye and remain my daily dietary
witnessed the myth-busting disassembly of prescription to my peers for their technological
my iMac by one of its accredited product challenges and problems. I truly hope this will
Richard Duncan
specialists on two successive occasions. be the case, but if the old adage holds true that
The Partnership, Sydney, Australia
Despite replacing three major parts to try to the apple never falls far from the tree, the
richardd@thepartnership.com.au
rectify a debilitating problem which prevented future looks bleak as the alternatives, in my
+61 411 549 791 me from using my precious iMac, the problem eyes, truly look rotten to the core. 

marketingmix.co.za / vol 27 / issue 11/12 / 2009


Expert opinion

Direct marketing
oodness, what a very boring title There is less unwanted mail in consumers’

G for an article. Let’s rephrase – does


any one out there know what direct
marketing is anymore? When I started
mailboxes, which makes the DM pieces
they do receive standout. When consumers
do read direct mail, they tend to only open
my career, direct marketing was the mail from advertisers with which they are
communication channel you used to talk familiar. That challenge, combined with the
directly to customers. There were two expense, and the fact that many retailers
channels: mail and telephone (inbound and are still only beginning to think about
outbound). We had statement stuffers and CRM, presents an opportunity for
solus mails and inserts in magazines; we marketers who view direct mail as an integral
had newsletters and, if necessary, some part of any successful CRM programme.
outbound calling… And we did it well. We One of the most challenging issues
segmented, we sliced and diced our data and direct marketers face is the necessity to test
we measured our responses… Our jobs and measure prior to continuing with a
depended on measurement. campaign. It is difficult to plan an annual
voucher campaign when you need the
results of the first campaign in order to
analyse and understand what worked and
what failed, where the best return on
“Back to basics seems to be a investment is and which data segments
should never be mailed again. Technology
good tactic at the moment, obviously plays a major role in this, but
even today, we find organisations still
especially if few of your operating on legacy systems and age old 13
data. A leap of faith from past experiences
and learnings from the industry can assist
competitors are doing it.”
in making decisions that may in the end
yield positive results.
During a recent trip to the UK, I visited
a number of stores I wouldn’t have
Recently, I sat through a very interesting ordinarily, including Boots, M&S and John
presentation where the speaker showed Lewis. At point of sale, I was asked
some statistics from the UK – all advertising whether I had their loyalty card, and even
spend was dramatically down, ‘DM’ by 5.5 though I did not, a number of POS vouchers
per cent yet ‘Internet and Internet Media’ were issued to me at the end of my till
were both up. What I am trying to define slips. I couldn’t help but wonder what
now is what has direct marketing become? happened to the multitude of shoppers like
For me, all the channels that are now me, who simply tossed the till slip and the
available are still direct marketing as long as vouchers because they are irrelevant, or has
they are direct communication to the that methodology become a hygiene factor
customer on a one-to-one basis, which – that is it’s the bare minimum consumers
includes e-mail and mobile messaging. It’s expect even when they don’t have a loyalty
still marketing directly, it’s just quicker, card? I spoke to one store manager who
possibly even better segmented and can be explained that it is a spray-and-pray-method
measured far more scientifically. So if this it has reverted to because it seems no one
is true, how can expenditure on direct is responding to its tailor-made e-mail
marketing be down? I’m puzzled. offers anymore.
On a more positive note, I am finding Back to basics seems to be a good tactic
that some corporates in SA are truly engaging at the moment, especially if few of your
in great direct marketing; finding innovative competitors are doing it. You have the
and collaborative methods of cutting opportunity to grab the high ground and
through the communication clutter and the emptier mail boxes, and make a
ensuring consumers are willing to receive statement to your existing or potential
Nici Stathacopoulos
relevant messages. Anecdotally, I’ve heard customer. Just make sure you engage with
head of Retail/WFS Integration and
from several large direct marketers that they an agency that can excite and delight the
Rewards Project, Woolworths
have renewed interest in mail because so recipient or your pricepiece? will truly
many others have dropped out of the game. stand out as junk mail.  nicistathacopoulos@woolworths.co.za

vol 27 / issue 11/12 / 2009 marketingmix.co.za


Suggestions and proposals welcome
Workshop Date
Best Retail Marketing Practices 16 & 17 February
Commuter Marketing Summit 24 February
Sports Marketing Master Class 4 March
Best Retail Marketing Practices 16 & 17 February
Commuter Marketing Summit 24 February
Marketing Direct – Best of theAsegai’s 10 March
4th Interactive Marketing Summit 17 & 18 March
Marketing at Retail Master Class 24 & 25 March
Shopper Insights Workshop 20 April
Effective Marketing in Township 12 & 13 May
Fashion Marketing at Retail 19 May
Financial Marketing Best Practices 24 May
Khuza Awards Insights Workshop 10 Aug
Mobile Marketing Summit – JHB 10 & 11 August
Mobile Marketing Summit – CPT 13 August
CRM Master Class Aug-10
Green Indaba Aug-10
OTC Pharmaceutical Marketing Aug-10
Marketing at Retail Annual Conference and Awards Sep-10
Digital Guru Master Class Sep-10
Liquor Marketing at Retail Sep-10
Luxury Marketing Summit Oct-10
Word of Mouth Marketing Oct-10
Western Cape Township Marketing Oct-10

2010 D elegate R ates

1 - 2 delegates 3 + delegates ex vat 5 + delegates ex vat


One day conference R3 300 per delegate R2 750 per delegate R2 500 per delegate
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Useful c ontacts
Sponsor Contact: Daisy Mulenga, daisym@systems.co.za / 011 234 7008
Delegate Contact: Marianne Nzioki, mariannen@systems.co.za / 011 234 7008
Speaker proposals: Terry Murphy, terrym@systems.co.za / 011 234 7008

Enquiries: mariannen@systems.co.za or 011 234 7008


For more information visit www.marketingmix.co.za
TV

15

The future of TV
Marketing Mix chats to Virginia Hollis, joint managing director, Sandton, The MediaShop, about
the local TV industry.

Marketing Mix: What will the local film and TV industry look like MMX: Repeat content is an irritant – do you think this will change
in 2010 and beyond? anytime soon?
Virginia Hollis: It’s difficult to predict what will happen to the VH: There will always be repeats or reruns. Viewers do not
local film and TV industry, but I would like to believe that local understand that when stations buy international content, especially
producers will find ways of releasing cheaper content because the movies, they buy the right to an initial broadcast in prime time and
stations are going to need a lot of material. If you look at countries then subsequent broadcasts off peak.
such as Nigeria (Nollywood) and India (Bollywood), while they Also stations buy one blockbuster and with that come a package
each produce expensive extravaganzas, they also produce volumes of of other titles. This is the only way that advertising during films
cheaper, entertaining shows. remains affordable. I think we also forget that as we’ve already seen
a series or movie, it doesn’t mean that everyone has; this is
MMX: Reality programmes are big with viewers; will this trend particularly true of M-Net and DStv viewers. We tend to forget that
continue? most households don’t have access to M-Net or DStv. Therefore
VH: Reality changes all the time. The icons – Survivor, Amazing repeating local content is something stations have to do to amortise
Race, Idols, SA’s Got Talent – are never going to go away as they are the costs. It is terribly expensive to produce local content and
serious talent shows. invariably stations cannot get their money back from just one
Shows such as Big Brother and the Biggest Loser will lose viewer broadcast; a repeat helps bring in additional revenue to cover the
interest after a while. As a genre, reality shows are here to stay but cost of production.
only the iconic ones will keep going. Therefore producers will need It is also extremely difficult to fill a 24-hour schedule. If we look
to come up with sillier ideas; I think we’ve only touched the tip of at the five major broadcasters (SABC 1,2,3, M-Net and e.tv)
the iceberg when it comes to ‘silly’ concepts! between them they have to fill 120 hours of programming a day or

vol 27 / issue 9/10 / 2009 marketingmix.co.za


TV

MMX: How best can marketers leverage the opportunities that


come with digital and high definition TV?
VH: I think that there are going to be many opportunities. But a
first question that needs to be answered is how much is going to be
charged to a) Produce a commercial for DTT and b) How much is
going to be charged for regional advertising?

MMX: Will the digital migration have any impact on advertising


rates?
VH: There will be an impact but the initial impact will be on the
macro strategy – who is the target market? How are you going to
use TV? Once you have these answers you can then start looking
at cost effectiveness. It’s going to be a case of which media is more
cost effective/impactful/efficient – TV, radio, print or outdoor?
TV no longer has to be the national purchase that is supported
regionally by other media.

MMX: Is TV 2.0 a reality in SA?


VH: For certain households, TV 2.0 will be a reality far sooner than
I think any of us realise. But for the vast majority there will be a
considerable wait.

MMX: Should marketers start planning for mobile TV?


VH: SA promised FIFA that mobile TV would be available in SA
during the 2010 World Cup. I know that M-Net has piloted mobile
TV for the last two years and it does work. For me the tricky thing
is the size of the screen. It’s very hard watching TV on a screen
that is so small – but if you are young, have great eyesight and are
desperate to watch everything now, then of course you will use it. I
16 Virginia Hollis, joint managing director, Sandton, The MediaShop do think that it is going to be expensive. In addition as far as
advertising goes it will happen, but I assume there are a whole lot of
43 800 hours per annum. Factor in DStv channels and you’re adding changes required to get a spot to run properly on mobile.
over another 150 000 hours!
MMX: Is there any chance that community TV will grow?
MMX: Will the introduction of new TV stations impact the way VH: We haven’t seen advertising on community radio take off and
programming is done? the same applies to TV. It is a ‘nice to have’ but not essential and
VH: It certainly opens up opportunities for the SABC to have a unfortunately the programming is not as engaging or compulsive as
dedicated sports and news channel. There are a lot of variations normal terrestrial/satellite TV. If this could be changed then it
such as kids’ channels and specific languages, but stations are going would be different. Still there is always room for community based
to have to be realistic and look at the costs. I’m sure that the media; it’s just never going to be as important to media people as
stations have already put in a lot of work on what they can and will normal TV.
do with their additional stations.
MMX: How best can advertisers tap into the mindset of viewers at
MMX: Do you think digital migration will have a major impact on community level?
TV in South Africa? VH: Involvement in programming is important here. Allowing
VH: We’ve already got problems with niche audiences on DStv; advertisers to sponsor or integrate into programming is far more
digital terrestrial TV (DTT) will amplify this. At the same time it effective at this level than straight advertising. For example a series
will offer a lot more opportunities such as split transmissions so on hygiene can feature advertisers in each episode such as washing
that advertisers can broadcast exclusively to a KZN audience, for hands (Dettol soap); cleaning teeth (Colgate); and drying between
example. your toes (Johnson’s baby powder). It can be done inexpensively
and these programmes are useful and are extremely important to all
MMX: How can planners start preparing for the new TV channels walks of life. Let’s not forget the value of educating youngsters at
so that they can be available with the digital migration? school as well.
VH: This is difficult to answer as we have to play the waiting game.
It will take time for the new channels to be rolled out as the MMX: Will TV stations start to consider user generated content as
stations cannot afford to launch lots of new ones once the set top part of programming strategies?
boxes are released. This will help media planners as we won’t have VH: I don’t believe that mainstream TV will use this, except when
to contend with 10 new stations at the end of 2010 or early 2011. it is integrated into a bigger platform, such as in a reality show
There is also the problem of tracking audiences. There were where content is produced for a cellphone then showcased in a
issues with DStv, not having sufficient representation on the panel, master show. I think that it is a bit risky letting people live stream
hence the introduction of iPanel. So we’ll see the same problem straight into your show – imagine what would be sent through! It
with the introduction of the new DTT stations – the main people obviously works on stations like MTV because shock value works
metre panel is not large enough to include these new stations. for that particular audience. 

marketingmix.co.za / vol 27 / issue 9/10 / 2009


Soccer Marketing Guide

Inside the mind


of a diski fan
his column is written from a mobile office (not the

T cellphone or PDA kind, but the four-wheeled bus


kind) and as I start this, I am being driven past the
impressive Soccer City stadium and my heart starts beating a
little quicker.
So while traffic on the Soweto highway is bumper to
bumper and everyone is moving in first gear, the construction
workers are in sixth and are working hard to ensure that
South African roads, stadiums, hotels etc will be ready for
tourists next year.
SA, according to Sepp Blatter, president of FIFA, passed
the Confederations Cup test and scored seven out of 10. Did
the Confederations Cup examination results ignite an adver-
20 tising furore? And the impressive pass mark, did it lead to the
launch of new clever and brand activation campaigns? Are the
local soccer media houses bombarded with advertisers who
want to book space in their publications and also learn more
about the local consumer? Have brands started looking for
those marketing gems that would set them apart in the build
up to and during the 2010 FIFA World Cup?
It doesn’t seem so.
So this Soccer Marketing Guide is filled with content that is
all about the beautiful game and next year’s 2010 FIFA World
Cup. The aim is to give marketers insight into the local diski
fan, how they consume media and brands, and the passion
that drives them to blow their vuvuzelas. There’s the legal
stuff, a look at available media and an all-important resource
guide.
I am excited by 2010, and if you look hard enough, don’t break FIFA’s rules and are creative enough, there are many
opportunities for marketing and advertising campaigns to fly before, during and after the 2010 FIFA World Cup.
It’s now time for soccer mania to reach fever pitch for South Africans and brands need to start pushing hard. 

marketingmix.co.za / vol 27 / issue 11/12 / 2009


Soccer Marketing Guide

Kick off your 2010


marketing efforts 21

Picture courtesy: Soccer Laduma

nce the final draws for the FIFA 2010 World Cup have

O been made on 4 December 2009 and the vuvuzelas start to


screech, all major marketing campaigns by some of the
world’s largest advertisers will come to life. “It is also a civil infringement of common law
The world governing body has made it its priority to safeguard its
sponsors who have paid a lot of money for the right to use the rights to pass-off products or services as part
World Cup as a marketing vehicle. FIFA is dependant on
partnerships with commercial affiliates to stage an event the scale of of the event; as well as unlawful competition
the FIFA World Cup. A large amount of the advertising spend
around 2010 is limited to official FIFA sponsors, and a large part of
that goes FIFA itself.
and a breach of the Advertising Standards
Using FIFA or 2010 World Cup trademarks without authorisation
constitutes a criminal offence under the Merchandise Marks Act, Authority code.” – Dr Owen Dean, an
Trade Practices Act and Copyright Act and the Counterfeit Goods
Act. According to Dr Owen Dean, an attorney who acts on behalf attorney who acts on behalf of FIFA’s
of FIFA’s intellectual property: “It is also a civil infringement of
common law rights to pass-off products or services as part of the
intellectual property
event; as well as unlawful competition and a breach of the
Advertising Standards Authority code.”
The legislation introduces measures that prohibit the use of
words in ad campaigns such as 2010 Soccer or World Cup, and the
presence of unaccredited advertisers within a three km radius of they have paid US$30m (about R226million) and Telkom US$36m
host stadiums. (about R272million).
The sponsorships are structured into different layers. The only According to Dr. Dean brands that are not official FIFA
South African company among FIFA’s first-tier partners is MTN, commercial affiliates have very little opportunity to take direct
adidas, Coca-Cola and McDonalds – each one is paying US$65m advantage from the 2010 FIFA World Cup. Through creativity
(about R491million). Second-tier SA sponsors include FNB and marketers can still find ways to sell their products to consumers

vol 27 / issue 11/12 / 2009 marketingmix.co.za


Soccer Marketing Guide

during the World Cup period, as Dr Dean explains: “An advertising attorneys,” says Dr Dean. The hotel industry is able to take
campaign referring to football in general terms does not constitute advantage of the shortfall of rooms required for the event.
an unauthorised association, unless it makes use of FIFA and World Accommodation providers can market their services freely to
Cup trade mark symbols.” visitors to the country during the World Cup, “But they must not
Kulula is not an official sponsor of the World Cup and has relate their marketing efforts to the World Cup. They can rather
launched a R12-million multi-platform advertising campaign for capitalise on the demand for accommodation at the time, to
print, TV and radio. The airline company initiated the campaign in provide accommodation facilities in South Africa in general,” says
2009 for the duration of the Confederations Cup but the campaign Dr Dean.
was not in contravention of the law. It showed the South African He also says that in due course fan parks will be organised and
colours taking to the skies with the radomes (nose cones) of the there may be some facility for non-official FIFA affiliates to
entire fleet resembling soccer balls. participate.
Garments with general football terms and images, or terms and According to the CEO of VWV, Abey Mokgatswane: “There is
imagery relating to South Africa, without an associated allusion to still opportunity for those who are imaginative enough to promote
the World Cup do not create an unauthorised association. In-store themselves and their products, while at the same time being
decoration with general football-related terms or symbols or terms cautious not to infringe legislation.”
or symbols related to South Africa, without any reference to the “For example start an inter-company soccer league, have branded
2010 FIFA World Cup, is not prohibited. football competitions or host large-scale events such as family fun
days and fan fests where staff, suppliers and other stakeholders are
invited to watch the game. These can all be branded under an
umbrella of clever opportunistic marketing, while not ignoring that
such events can boost relationship building and networking
opportunities,” says Mokgatswane.

“The situation regarding advertising on No match ban for non-ticket holders


World Cup match attendance is not limited to ticket holders; fan
protocol routes is still unclear as FIFA is parks and public viewing places will aim to pull in fans that do not
have tickets.
22 advising the out of home industry one These parks will be situated in central areas to allow public easy
access and entrance will be free. In Johannesburg Mary Fitzgerald
Square in Newtown has been earmarked as a fan park and Innesfree
thing while the bylaws promulgated by the
Park in Sandton will be a public viewing area. The Durban Beach
Front is also anticipated to be a fan park.
cities are contradicting FIFA’s advice. The “Details pertaining to these venues are not yet available. Brands
can simply rely on increased commercial activity during the period
Johannesburg City Council has agreed that of the World Cup to expand their markets,” adds Dr Dean.
Matthew Gertenbach, marketing executive for Megapro says:
it will obtain confirmation from FIFA with “The opportunity to ride on the hype of the 2010 FIFA World Cup
is to advertise at all Bafana Bafana team games leading up the World
Cup. Fans will always develop a passion for a sport when there is
regard to the actual state of play.” hype around the event where the team is participating, and even
more so for an event of this proportion.”
The bylaws gazetted by all the World Cup host cities prevent
companies that are not official sponsors of the 2010 FIFA World
Cup from advertising on billboards on protocol routes. The bylaws
require non-official sponsors of the tournament to remove their
Dr Dean advises marketers: “In the event that marketers wish to advertising 15 days before the tournament until five days after the
use an opportunity presented by the hosting of the 2010 FIFA tournament has ended.
World Cup in South Africa to sell products or services, they should This rule has created uneasiness with outdoor advertisers as it
either seek a licence from FIFA; enter into some form of cooperation stands to lose revenue.
agreement with an authorised sponsor or licensee; or market and In response to this Out of Home Media South Africa issued a
sell products in the normal way and seek to capitalise on the statement warning its members that intend to advertise on any out
enhanced commercial and business activity during the tournament of home media during the period preceding, during and post the
period.” World Cup to have their advertising content pre-cleared either
The FIFA Public Information Sheet has more information on the through media owners or the FIFA Local Organising Committee
various useful examples of when FIFA’s marks can safely be used. office.
The booklet can be downloaded from the FIFA website. “The situation regarding advertising on protocol routes is still
http://www.fifa.com/mm/53/42/06/2010_fifa_public_guidelines_en unclear as FIFA is advising the out of home industry one thing
_260908.pdf. while the bylaws promulgated by the cities are contradicting FIFA’s
“Anyone interested in knowing more can consult the official advice. The Johannesburg City Council has agreed that it will obtain
FIFA guidelines regarding what is permissible marketing during the confirmation from FIFA with regard to the actual state of play,”
time of the World Cup. The rest they should seek advice from their announces the statement. 

marketingmix.co.za / vol 27 / issue 11/12 / 2009


Soccer Marketing Guide

Measuring effectiveness of
sports sponsorship
By Neil Jankelowitz, joint managing director, MSC Sport

igning off a sizable budget for a particular sponsorship can be

S daunting. However in using a comprehensive strategy, a


thorough implementation plan and in-depth measuring tools,
any fears should be erased and opportunities embraced.
Results consistently show a significant return on investment in
the use of sports as an effective marketing tool, which is firmly
established worldwide. There are a number of vital elements that
make up a successful sports marketing campaign. Prior to securing
rights, it is essential that an all-inclusive strategy is formulated and
that ‘Chairman’s Folly’(when a brand sponsors a particular sport
because it is the first love of the CEO or chairman, and does not
necessarily fit with the brand or its objectives) is avoided. The
setting of the business or its respective unit’s objectives is a task
that we believe is critical to the success or failure of a campaign and 23
the important measurements of that campaign.
There are a number of tools to assist us in establishing the
objectives of a campaign, the relevance to the brand and ultimately
the benchmarks which we will use to measure the success of a
campaign.
The first tool that assists us is the Making Sport Count Matrix –
a template where each potential opportunity is filtered and tested
against the clients’ specific objectives. One cannot comprehensively
measure the success of a campaign if you are not 100 per cent
certain of what you are measuring against. Whether it be the
objective of increased staff morale, sales leads or brand awareness,
all areas are rated in terms of importance, which assists with further
measurement tools that need to be set up to ensure the perfect sustain their pre-2010 soccer investments post 14 July 2010. For
strategic fit. example will Hyundai keep the naming rights of Hyundai Park in
The second tool which can be used in relation to measuring the Soweto, or will McDonalds continue investing in the soccer space
success of the campaign is the use of a media tracking company. For post the World Cup? The fact that ABSA and Vodacom recently
example BMI and Newsclip provide in-depth reports that highlight received the highest brand recall rate (BMI statistics 2009),
where and when your brand features as well as the value of being underpins the importance of long term investment in the sports
featured. These research companies can also provide historic data of marketing arena.
the event and so providing a benchmark for your campaign. It is important to keep in mind that as with any opportunity it
Knowing this information is pivotal in the planning and support of can be reworked and remodelled in such a way that your objectives
a detailed marketing campaign in and around the sponsored property. can be met. Remodelling is executed best by experts in the sports
Another benefit is of research companies is uncovering whether the marketing field and is identified by knowing who to deal with and
property receives the promised exposure. how to implement to the end result.
To support this data we recommend conducting surveys before Once the client is comfortable with the proposed property and
and after the campaign. Direct marketing research companies the Making Sport Count matrix or similar vehicle has been made
provide sample response and recall rates with new respondents or use of, all that is left to do is for the client and agency to implement
the same sample before and after the campaign. This allows us to the campaign, sweating out each and every sponsorship correctly
understand the impact and ‘mindshare’ the brand has secured during and ensuring that all that you do is measured – whether it be
the period under review. through online surveys or exposure reports.
We have found that once-off campaigns are never as beneficial as It is imperative that the clients’ objectives be kept in mind at all
those which continue for several seasons. Keeping 2010 and ‘soccer times as it is this that one measures against and ultimately defines
fever’ in mind it will certainly be interesting to see which brands the success of any campaign. 

vol 27 / issue 11/12 / 2009 marketingmix.co.za


Soccer Marketing Guide

Mobilise your brand


By Patrick Kawuna, co-founder of Livemobile

he good news that every African wants to hear is that the

T 2010 FIFA World Cup is only a few months away. The bad
news is that all traditional advertising platforms have been
booked. Outdoor, print, TV media have all been sold out for the
June and July 2010 period.
However a platform with the most eyeball power and the one
with the most measurability is still available.
It is estimated that there are about 416 million mobile users on
the African continent with South Africa contributing 37 million of
these. This creates a platform for cellphone to be used as a ‘remote
control’ to turn these customers onto your brand.
Football fans tend to support a number of teams, one in the
South African PSL, one in the English Premier League or in another
major league in the world.

It is crucial for any advertiser or sponsor


24 looking to reach this market to carefully

consider implementing a strategy that will link

a campaign to all the elements of the mobile

football experience.
For the mobile Internet, advertisers can seek packages to link
banner or text ad campaigns to a live match commentary across the
entire service or choose a particular team or a league/competition
for the brand to be associated with (depending on the target
market). For example, an advertiser may take up a Kaizer Chiefs
For someone who is passionate about football, it is vital to get package and run a campaign to focus on the live match commentary
information about a preferred team as it happens, and this is where and news for that particular club, therefore targeting the direct fans
mobile marketing steps up to the mark. of a particular club.
A goal alert SMS delivered to a football fan within 15 seconds of A ‘push’ example is the delivery of live match SMS updates to
the actual goal being scored offers greater value than hearing about the fan. The branding and sponsorship of live match SMS updates
it during the news bulletin an hour later. A multimedia match report is a powerful way for advertisers to reach the target market
delivered via MMS to a fan immediately after the match providing a and solicit measurable cost per click or call to action traffic for
full analysis of the match and access to an archive of video highlight their campaigns.
packages can further enhance the user experience of football on the Similarly MMS match reports and videos can be ‘pushed’ to the
cellphone. A sponsor based multichannel delivery of football recipient and used as an advertising channel to drive branding and
information and content is a powerful tool for advertisers to reach call to action campaigns. Because recipients opt into receiving these
this market while offering real value. updates, the advertising can be packaged in a way that it is seen to
With major sponsorship avenues such as league/cup competitions be adding value to the user. Therefore instead of being intrusive it
and club sponsorships already tied up, mobile opens up new becomes part of their personal football experience.
opportunities for brands that are not currently official sponsors of It is crucial for any advertiser or sponsor looking to reach this
the game, to become brand players in the industry. market to carefully consider implementing a strategy that will link a
An advertising campaign strategy across the ‘push’ delivery campaign to all the elements of the mobile football experience. The
methods (SMS and MMS) and ‘pull’ delivery methods (mobile mobile opportunities above present a way for brands that are not in
Internet and Java based applications) guarantee a successful direct football sponsorship to get into the football market in an
campaign for a sponsor and ensure that a brand is exposed to fans innovative way and gain brand affinity in the industry through the
during a mobile football experience. open market route that mobile presents. 

marketingmix.co.za / vol 27 / issue 11/12 / 2009


Soccer Marketing Guide

World Cup 2010 – uniquely Afr can


Abey Mokgwatsane, CEO, VWV Group

he 2010 FIFA World Cup is by far the biggest show on the

T globe and it’s coming to our country. According to consulting


firm Grant Thornton, the World Cup will pump around
R21.3 billion into South Africa’s economy, generating an estimated
R12.7 billion in direct spending. Marketing opportunities (and
vuvuzelas) scream at these stats!
Similar to when a small town awaits the arrival of the circus, SA
has already hung the posters and warmed the crowds for trapeze
artists, juggling clowns and dancing elephants. The fun has begun –
we’re upgrading roads, building hotels, and taking strides to
combat crime.

An external marketing engine


We must give credit to FIFA’s ongoing drive to structure 2010 as an
external marketing opportunity by inviting sponsors and encouraging
corporates to leverage their association to the organisation. FIFA,
by definition, is selling the positive association with its brand to SA
and its partners.
With an estimated three million global visitors, together with the 25
eyes of billions watching from around the world, the media It goes without saying that there are multiple ways to leverage
attention that the southern tip of Africa will attract is simply 2010 and develop related platforms to drive interaction and internal
unprecedented. The indirect spin-offs of an improved international dialogue, but most importantly these practices should be aligned
image will have an even greater impact on the economy in years to with a business strategy. Many superficial spirit generating internal
come. The question that begs answering, is how can businesses programmes are sure to emerge, all supported with promotional
leverage the circus from an internal marketing point of view? gifts including the obligatory branded soccer T-shirts, personal
Businesspeople should be focusing on what the 2006 World Cup vuvuzela’s and even fun face-painting exercises and so on. However,
did for Germany. Hosting the World Cup altered the reputation of the real opportunity to strategically align internal marketing
the country giving it good PR. Not only was its international activities to drive business objectives should not be missed nor
reputation transformed with newfound national pride, Germany’s confused with promotional paraphernalia.
image was successfully positively positioned overnight. All this even As the host of the 2010 tournament, South Africa has been
before any money was made. transformed into a soccer nation for the coming year. While soccer
Since reputations don’t develop randomly – and this is true for is already the most ubiquitous sport in the world, hosting the World
businesses as it is for countries and their people – it stands to Cup makes it that much more accessible to all employees.
reason that internal reputation can be developed and promoted Designing a programme that incorporates and leverages off this
strategically too. theme could help your company to achieve its goals; it’s the smart
thing to do.
Team players
External marketing campaigns have been well documented in the Offering the ball around
media and most marketing budgets are aimed at this audience. Corporate social investment (CSI) can be put into action by
Businesses need to be smart about channelling energy from the adopting an underprivileged soccer club or by sponsoring branded
2010 vehicle toward its brand, and should use the opportunity to kits or providing transport. Another initiative would be to commission
activate internal marketing programmes that will unify staff, retain underprivileged communities to develop branded merchandise to be
employees, increase productivity, heighten morale, intensify loyalty, sold within your company in the spirit of 2010.
secure buy-in and assist transformation. It’s not long until the start of the World Cup and we are
A good example of a scenario that could benefit from 2010 somewhat unprepared for the circus, and – shockingly – some
associated activity is if an organisation that has transformation people have neglected to even consider internal mobilisation as an
issues where employees could not get to grips with the cultures opportunity. Activating internal applications through leveraging
and nuances of different racial groups. For example, putting 2010 will be the employment differentiator
together an all-in, cross-gender, five-a-side round robin football and help businesses to achieve business objectives. Either way
tournament would provide a way of getting people to interact, it is going to be the greatest show on earth and we can’t wait to
share stories, build team spirit and collaborate effectively towards a host other nations and treat the global audience to a uniquely
win-win situation. African experience. 

vol 27 / issue 11/12 / 2009 marketingmix.co.za


Soccer Marketing Guide

Marketing Mix chats to George


Dearnaley, soccer business
manager, Media24, about 2010
and its opportunities.
MMX: When can we expect the broadcasters to announce wastage. Marketers will do well to focus on the core, trusted media
plans? products that reach their defined target markets as there will be a lot
of ‘fly-by-night’ operators trying to capitalise on this opportunity.
GD: I think there is a lot of negotiating taking place behind the
scenes – once they are allowed to release their info, I’m sure they MMX: Do you expect that broadcasters will raise
26 will make sure every marketer is aware of the various options advertising rates for the duration of the World Cup?
and packages.
GD: Absolutely. The statistics, facts and figures all show how
powerful television is during this event and broadcasters will surely
take advantage of this. There is also the issue of finite space during
the match broadcasts and so the prime spots will be worth a lot
more for the big matches. I imagine that some of the core print
“Regarding print ads, I think there is a lot of media products will be taking advantage of the event but on the
whole I believe most publishers are aware of the financial straits that
fear among local marketers about stepping the majority of marketers find themselves in and will budget
accordingly.
on FIFA’s toes. FIFA makes it very clear – you
MMX: What advice do you have for brands that don’t
have a bottomless budget?
cannot create an unofficial association with its
GD: Firstly, the TV coverage of the World Cup extends way
event – but you can use generic football beyond just the live matches. There are daily analyses, preview
shows and review shows, highlights packages, news clips and expert
images, terminology and messages.” feedback almost 24 hours a day for the entire month!
Regarding print ads, I think there is a lot of fear among local
marketers about stepping on FIFA’s toes. FIFA makes it very clear
– you cannot create an unofficial association with its event – but
you can use generic football images, terminology and messages. The
obvious opportunity for clients is to make the most of the passion
MMX: When will we know publishers’ plans for the 2010 and excitement around the World Cup by creating material that will
FIFA World Cup? have World Cup ‘talkability’ and relevance for their products. And
don’t be confused by who your market is. I keep hearing clients
GD: This is the first World Cup football event in the modern era to discussing ways and means to ‘reach’ the foreign fans even though
take place amid such a global economic mess. There are bigger issues the majority of them will only be here for two weeks!
to be considered for all businesses over the next financial year and Media24 has been engaging with FIFA since 2004 – when we
publishers who are planning their budgets for the new fiscal year and published the African edition of the Official 2006 FIFA Tournament
who think the World Cup is the solution to all their financial prob- Guide – so we have a good idea of what we can and cannot do. We also
lems are dreaming. Everyone in the media industry is trying to make offer advice, ideas and opportunities to our advertising clients as part
the most of this event – this will result in enormous clutter and of our service, so that none of them get on the wrong side of FIFA!

marketingmix.co.za / vol 27 / issue 11/12 / 2009


Soccer Marketing Guide

MMX: How should media planning and segmentation be the experience, and those that will avoid it at all costs. Who do you
done during the 2010 craze for the best results? want to talk to?

GD: As per the above, media planners should be focusing on their MMX: Out-of-home TV viewing is huge. What is the
clients’ target market. If some titles experience a slight increase in impact of this on advertising and marketing?
circulation because of the ‘tourists’, that could be seen as a bonus
but it’s really only relevant if they represent the core target market GD: The World Cup is a social event – people are drawn to
for the client. In Germany in 2006, the official products produced crowds, they want to sample the atmosphere even if it is in a packed
in English did a lot better than those in German simply because local pub. Sadly, the World Cup is not just about Brazil, England,
there were more people who could speak English either as a first or Spain and Holland. I doubt the majority of South African fans will
second language. I have argued in various discussions that the stay up to watch matches like North Korea versus Honduras or
World Cup tournament is not really a circulation driver because Chile versus Slovakia. Not every group match will be a ‘must see’
there is such saturated content all over the place. If anything, for a lot of people, but games featuring the big names in world
publishers will do well to maintain their circulation over this time. football will be massive. The England and Spain games will get a lot
I have been involved in enough ‘2010’ discussions across the of television audience as will Bafana Bafana matches – seriously! The
various Media24 commercial teams to know that there are plenty opening match of the World Cup will break whatever the current
of great ideas and media solutions available for media planners TV audience rating is!
out there – they just need to engage with their media reps and do
their homework. Do you think print will see increased circulations, as
tourists pick up mags and newspapers?

GD: I think ‘international’ titles that are known in Europe and


North America such as Men’s Health or Sports Illustrated might
benefit. I’m certain there will be a few extra casual purchases by
tourists and I think distribution points at airports, train stations and
“In general though, apart from a few titles other transport hubs will do well. Newspapers need to ensure their 27
coverage of international news during the tournament is well
that crack some brand extensions and marketed – this could generate some additional copy sales. In
general though, apart from a few titles that crack some brand
extensions and supplements during this time, I don’t think it is a
supplements during this time, I don’t think it
circulation opportunity.

is a circulation opportunity.”
MMX: How will the mags and newspapers in your stable
maximise on the soccer fever?

GD: Without giving away any secrets, various titles and business
units within our group will do a range of exciting special issues and
The best advice I can give to anyone out there who wants to supplements but right now nobody wants to publish something that
reach an audience during the event is to consider the ‘environment’ doesn’t add value for our readers or make financial sense. We are
and the conditions of the World Cup tournament. still analysing various options and projects and these will be
 It’s winter. That means different things to people in Durban and available to the market early next year.
people in Cape Town. Being outdoors in Cape Town is not great The World Cup tournament is not a ‘final destination’ for
when the rain is pouring and it’s dark by 4.30 pm! Media24, if anything it provides a launch pad for additional projects
 It’s only one month long – the majority of fans will only be here and initiatives that will seek to take advantage of any positive
for the first two weeks. What would an average day’s activities be momentum the event generates. We are not interested in making a
for a group of five foreign men? quick buck out of the tournament, but we recognise that the
 There is no school. There will be thousands of moms trying to tournament provides us with a catalyst that hopefully stimulates
deal with their children who want to go into the cities to additional business beyond the final whistle.
Within the Media24 group, SupaStrikas has got some great ideas
experience the ‘World Cup’. How will they consume media?
 There will be traffic congestion in the host cities on match days.
and opportunities as does Sport24 in the online space. Family
 Most of the international visitors will be men. They want to
Magazines has really embraced the World Cup and will be doing
some clever things in the new year and community newspapers are
drink beer and watch as many of the games as possible,
busy finalising some great projects. There is some suggestion that
preferably in a social environment.
we are all behind schedule or running out of time, but the reality is
 South Africans will form three groups – those who will embrace
that no major sports event has ever managed to sustain a high level
the World Cup and want to be a part of the action wherever they of interest and support for more than 10 weeks prior to the start of
can, those who are curious and might come out to have a look at the event. I believe that the 2010 World Cup frenzy will start from
what all the fuss is about and maybe attend a fan zone just for somewhere around 1April 2010 – no jokes! 

vol 27 / issue 11/12 / 2009 marketingmix.co.za


Soccer Marketing Guide

Untapped market
he South African football media consumer is incredibly

T passionate about the sport, wears makarapa and blows a


vuvuzela during a game. A large percentage of the fans are
black males and over the past 15 years the collective spending power
Sponsorship opportunities
The National First Division is still without a sponsor, available
of black males has grown tremendously. But South African football opportunities are to either sponsor a league tournament or the league
fans are all too often perceived as down market. “If you take two of itself. According to Zizi Hollander, GM Soccer Laduma, all the big
the biggest male magazines in the country and put them up against tournaments in the PSL already have sponsors. It might be
Kick Off, some very interesting figures are revealed. Collective worthwhile to create four team tournaments in January when the
earnings of the Kick Off readers account for 62 per cent more than league will be frozen (to allow the national squad to prepare), and
Men’s Health and 45 per cent more than Car magazine. Surely this then sponsor these tournaments. One could also look at clubs in the
should squash any perceptions of soccer fans not having buying
PSL who do not have a main sponsor. Some sponsors like to get
power,” says Mark Murphy, associate publisher, Kick Off.
involved in the youth development programmes of clubs as an option.
Soccer-Laduma’s reader profile also backs up the assertions made
Most of the traditional soccer marketing platforms are at clubs and
by Murphy. “Soccer-Laduma currently has 2 733 000 readers, 85 per
cent of whom are men, 67 per cent are in the 16-35 year age group; the PSL.
53 per cent in LSM 5-6 and another 25 per cent are in LSM 7-10.
Up to 44 per cent have household incomes of R5 000 or more per
month, says Zizi Hollander, general manager, Soccer-Laduma. No other publishers in SA are able to produce these products with
Local fans are very enthusiastic about the game, want up-to-date the FIFA marks and approval. Touchline’s official titles will be sold
information and are happy to pay to consume specialised media to through the stadiums and hospitality companies, with no other title
stay informed. According to Taryn Gill, Avusa soccer strategist and sold in the stadium or at the official fan parks. “We are engaging
publisher of SoccerLife 442, “2010 presents a real opportunity for a with some of the hospitality companies on getting our magazine out
niche product like SoccerLife 442 to grow not only traditional soccer to tourists too,” says Murphy.
audiences, but also acquire non-traditional readers. With the Other publications, while not able to produce anything related to
28 magnitude of the 2010 FIFA World Cup, all South Africans will get FIFA, are still able to use the World Cup to provide readers with
caught in the soccer fever; and this gives the sport a real chance to soccer-related info. Soccer Life 442, for example, will be producing a
break through the perception that football is only supported by SA’s 90-page soccer fan’s one-stop reference to the tournament in May
black males.” 2010. Integrating digital platforms with print works well for
To harness the potential of the World Cup marketers need to SoccerLife 442, “When you buy this issue of SoccerLife magazine,
understand that there are two kinds of clients out there, one who you will get a pocket-sized city culture soccer guide that will also be
needs to reach the local market only and one that would like to available for downloading to a cellphone for convenience and easy
attract foreign tourists. But, warns Murphy, “Always be true to the anytime reference. We will be offering our advertisers packaged
market that will be loyal to your brand when the 2010 craze has deals that include print and online, says Gill.
come and gone, and continue reaching them in a language they For Kick Off, a range of products will be released between
understand. December and June next year. “We will be producing unofficial
guides and products that will give all advertisers the opportunity to
Official media partners reach the soccer market,” says Murphy.
Advertising spend is expected to reach a record high as the 2010 Radio 2000 relaunched and rebranded in 2008 when it took on
FIFA World Cup approaches. Official media partners are preparing the role of SABC’s official radio broadcaster for the World Cup,
to cater for the demand with the top six FIFA sponsors and the allowing it to target a new audience of LSM 6-10, aged 25-34 years.
national supporters are given preference when it comes to FIFA’s strict rules only allow a few radio stations to cover all the
advertising. “The World Cup is a first-class event, and will be sold as World Cup matches,” says Cuthbert Mashego, programmes manager,
such. The rights were secured at a premium, so the SABC will need Radio 2000.
to charge accordingly to recoup its investment, says Peter Kwele, The radio station has introduced 2010 features in all its
head of the SABC Crucial 2010 Unit. programmes. In addition, Radio 2000 is creating awareness of the
He adds that, “in the US, there is the Super Bowl phenomenon business opportunities that the event brings with it. Radio 2000 is
whereby brands go absolutely wild, planning, budgeting and planning to broadcast live from public viewing areas and fan parks,
motivating for a single 30-second ad during half-time. I have yet to giving fans an opportunity to interact with on-air personalities and
see this level of advertising furore or excitement in SA, even though studio guests live on radio. “Radio 2000 will be broadcasting all 64
we boast such events as the Soweto Derby and the Currie Cup. matches; brands can use this opportunity to advertise their products
Perhaps the market is not sophisticated enough.” to an expected increased audience at that time,” says Mashego.
Touchline Media is producing the official FIFA publications for
the 2010 World Cup aimed at both local and international football Mobile
fans. The publisher has secured the rights for Love Life and A new ingredient in the media mix next year is mobile TV; the
government departments to advertise in the official media. The Independent Broadcasting Authority is working on finalising
company also has a contract with the Global Brands Group to regulations on mobile TV. The regulator will soon issue an invitation
publish official licensed print products such as the 2010 preview to interested parties to apply so that live TV can be watched on a
guide, posters, official travel guide, calendars and colour-in books. cellphone. > p33

marketingmix.co.za / vol 27 / issue 11/12 / 2009


Soccer Marketing Guide

ABC figures for July to September 2009 (unless otherwise indicated)


Publication Subscriptions and Total paid Total circulation Corresponding
single copy sales previous period
Kick Off Magazine (fortnightly) 53 180 53 180 53 180 59 256
SoccerLife 442 (Jan-June 09) Alt monthly 31 969 32 002 32 409 35 431
Soccer Laduma (weekly) 309 645 309 645 309 645 332 987
Amakhosi Magazine (monthly) 21 324 21 324 21 342 27 393
Sowetan Soccer Magazine (Jan 08-Dec 08) Bi-annual 11 806 11 806 15 181 New member
Football Arena (weekly) 11 696 11 696 11 696 New member
Soccer Week (weekly) 10 352 10 352 10 352 New member

>> p28

There are other options available for mobile marketing. A most important sporting events in the world,” says Khanyi Dhlomo,
campaign targeting any team in the PSL or any other league can be MD of Ndalo Media.
run focusing on the club’s live match commentary and news, for
example. “Users opt-in to receiving messages in the form of Online
updates etc, and advertising can be packaged in a way that it is seen www.soccerladuma.co.za (the official website of Soccer-Laduma)
to be adding value to the user instead of being intrusive. In fact, the www.kaizerchiefs.co.za (official website for Kaizer Chiefs)
advertising becomes part of a user’s personal football experience,” www.soccerlife.co.za (official website for SoccerLife)
says Patrick Kawuna, co-founder of Livemobile.
Hollander finds it hard to believe that there was a time when Mobisites
Soccer-Laduma operated as just a newspaper. “Our website and www.soccerweek.mobi (official mobisite for SoccerWeek)
mobisite attracted 230 000 unique visitors in September 2009 alone. soccerladuma.mobi (official mobisite for SoccerLaduma)
Everything we do for the World Cup will include new media www.soccerlife.mobi (official mobisite for SoccerLife)
alongside print. It would be crazy not to,” she says. “It’s hard to
ascertain exactly how many visitors come to our website each TV
month because many users share a computer (Internet cafes, SABC 33
universities, libraries, work, etc) and the computer is counted as the SABC1 – Laduma – Build Up; Laduma – ABSA Premiership;
user. There is no official information on demographics but we Countdown 2010; Soccer 411; FNB African Soccer Show; YO.TV
assume that they are predominantly male in the 16-35 age group, Vuvuzela; Coca-Cola Soccer Zone
mainly students or employed, and heavily weighted in the LSM 5-10 SABC2: Know Your Game; Sport on 2 (will include soccer)
group,” Hollander adds. SABC3: Sport on 3 (will include soccer); English Premier League
Using social media and networks allows for greater interaction e.tv: Playa – 2010 Soccer Show; e-Shibobo
with its readers and audience is high on the list for Soccer-Laduma. SuperSport: SuperSport 3 and 4 are dedicated channels.
The weekly is looking to elevate the status of contributors by www.supersport.co.za/football
giving them official blogs/podcasts as well as introducing SuperSport 3 includes programmes such as 2010 World Cup
Soccer-Laduma TV, where users can upload their video clips. Magazine; La Liga; Goalissimo; UEFA Champions League; FIFA
“Express Yourself on our Web and a mobisite allows citizen Futbol Mundial; FA Premier League; Inter Milan TV; Juventus TV;
journalists to send in everything from opinions to match reports. Woza 2010; Soccer Africa; Coca-Cola Championship; AC Milan Weekly;
We will be able to target the exact groups age/sex/LSMs that The World Football Show; Futbol De Primera; Real Madrid TV.
brands would like to speak to as we learn more about our online SuperSport 4 includes programmes such as SuperDiski: Premier
community,” says Kwele. Soccer League; Woza 2010; PSL TV; ABSA Premierships Kings; The
Matsatsantsa Show; Engen Premier Soccer; Soccer Africa; Kaizer
Taxi rank TV Chiefs TV.
SABC works with ComutaNet to screen its content to commuters
using public transport via RANK TV. “We will be interested to see Radio
if the RANK TV sites can become public viewing areas. In those Metro FM (Discovery Sports Centre with Robert Marawa)
ranks that fall outside of the 1km stadium radius, we will most RAMS October 2009 listeners past seven days: 5.255 million
certainly allow informal traders and small businesses to get
involved,” says Kwele. Radio 2000 is the official 2010 FIFA World Cup station.
RAMS October 2009 listeners past seven days: 721 0000
Reaching for the teens
Aiming to capture the market that influences most buying SAfm – Gameplan; SAfm Sports Special
decisions in households, Ndalo Media launched SportsTeen, a RAMS October 2009 listeners past seven days: 648 000
monthly sports magazine aimed at sports crazed teen boys.
“We are a monthly magazine aimed at sports fans, with a strong Ukhozi FM – 2010 Ses’fikile
focus on soccer, and so are already well positioned to tap into RAMS October 2009 listeners past seven days: 5.954 million
the potential of 2010. While TV will certainly get its share of
the ad spend, print will remain a priority. It provides the Trufm Grandstands
opportunity for lasting imagery and a keepsake of one of the RAMS October 2009 listeners past seven days: 350 000 listeners. 

vol 27 / issue 11/12 / 2009 marketingmix.co.za


Soccer Marketing Guide

Resources
FIFA
www.fifa.com/worldcup
For the marketing rules and regulations, visit
Newspapers Magazines
http://www.fifa.com/aboutfifa/documentlibrary/doclists/marketing.html
Soccer-Laduma Kick Off
Zizi Hollander Mark Murphy
FIFA Local Organising Committee (LOC)
(021) 425 1200 mmurphy@touchline.co.za
Emy Casaletti, marketing manager: (011) 567 2010
zizi@soccerladuma.co.za (021) 408 1258
or Jermain Craig, media manager: 083 2010 121
www.soccerladuma.co.za www.kickoff.com
FIFA licences, sub-licences, merchandising, and marketing/distribution:
Soccer Week www.soccerweek.mobi Amakhosi
Global Brands Group www.globalbrandsgroup.com.
Retailers/ buyers as well as companies wanting to enquire about FIFA http://www.kaizerchiefs.com
Sowetan Soccer magazine – quarterly
distribution rights, contact Neil Nottingham
www.hsm.co.za/sowetan-soccer.html SoccerLife
(neil.nottingham@globalbrandsgroup.com)
Enquiries about trade marketing and merchandising of the FIFA brand Taryn Gill
should contact Katie Black (Katie.black@globalbrandsgroup.com). (011) 280 5154
gillt@avusa.co.za
South African office: Darryl Kroll
Mobile www.soccerlife.co.za
Paul Zacks Retail sales & merchandising
Live Mobile
General manager manager
http://www.livemobile.co.za/ Touchline Media
(011) 537 4640 (011) 537 4640
www.touchline.co.za
PA Sports
Edward Lindsay-Bowman
http://www.pa-sport.co.za/divisions/za/en/
Licensing sales manager
(011) 537 4640 Outdoor 35
TEAMTalk Media OHMSA
http://www.teamtalkmedia.co.za/mobile.html http://www.ohmsa.co.za/

Mobile TV on Vodafone Live! Agencies


Stadiums
www.vodacom.co.za and live broadcast ThirtyFour Sport
http://www.fifa.com/worldcup/destination/stadiums/index.html
with DVB-H from DStv in time for 2010 http://www.34.co.za/
http://www.sa-venues.com/2010/2010-stadium.htm
http://www.dstvmobile.co.za
http://www.southafrica.info/about/sport/stadiums.htm
MSC Sport
www.mscsports.co.za

Other useful info MegaPro


www.football365.co.za www.megapro.co.za
Radio www.psl.co.za
Metro FM - Discovery Sports Centre with www.thesoccerpages.com
Robert Marawa www.southafrica.info/2010
Radio 2000 – official 2010 FIFA World www.safa.net Legal
Cup station www.sa2010.gov.za Dr Owen Dean
SAfm – Gameplan; SAfm Sports Special www.southafrica.info/about/sport/soccer.htm Spoor & Fisher
Ukhozi FM - 2010 Ses’fikile http://www.joburg.org.za/content/view/654/167/ (021) 673 4418
Trufm – Grandstands http://www.marketingmix.co.za/pebble.asp?relid=59 o.dean@spoor.com

TV
SABC
Peter Kwele, 2010 general manager
e.tv: www.etv.co.za
SuperSport: SuperSport 3 and 4 are dedicated
channels.
www.supersport.co.za/football

Picture courtesy: Soccer Laduma

vol 27 / issue 11/12 / 2009 marketingmix.co.za


Brand anatomy

MINI – 50 years of cool


Just what is the epitome of cool? It’s base and was still recognised for its original status of
incredibly hard to define – each being cool and audacious.
consumer has their own opinion – but Importantly, Mini drivers became emotionally attached
36 occasionally there is a brand that to the car. So when the brand was bought by BMW in
transcends all barriers and just about 1994 as part of the Rover Group and in 2000 it was
everyone agrees. The MINI, celebrating withdrawn from production with a revamp on its way –
its 50th birthday this year, is one of car lovers were intrigued. Could BMW maintain the car’s
those rare brands. cult status?
First built in the UK in 1959, the tiny On the day of reckoning in 2001 when BMW unveiled
car quickly resonated with consumers the new look MINI, it wasn’t just Mini owners who held
for its quirky, compact (especially their breath.
important for London drivers) and “Our initial re-entry into the South African market
fashionable image at the height of the seemed slow, but this was mainly determined by the
‘Cool Britannia’ era during the swinging enormous global demand for our product. Growth in this
60s. The Mini offered practical aspects such country was hampered by production constraints. But as
as economic fuel consumption at the time soon as production improved, we saw an increase in sales,
of the Suez Crisis, while managing to keep which meant our brand had remained as desirable as it was
the fun and adventurous spirit of the time. in the 60s,” says Karen Valle, general manager, MINI
The Mini was driven by celebrities such South Africa.
as The Beatles, Steve McQueen, Mick Globally the car was a hit, delighting fans as well as
Jagger, Peter Sellers and even Enzo Ferrari. allowing a new generation of consumers to fall in love
The Mini also featured in ads with the with the iconic brand. BMW successfully retained the
world’s first supermodel Twiggy (she also Mini shape whilst improving performance and size and
owned one), which cemented the car’s updating it for the 21st century.
position as fashionable and hip. “We used the 1959 original Mini as a template for the
A firm favourite with students (always new car in terms of dynamics and handling, and our
purveyors of style and cool), the Mini
continued to build itself into global brand;
films such as the 1969 The Italian Job (the Setting the record straight
remake in 2003 with our own Charlize
Theron features the new MINI built by Karen Valle, GM, MINI South Africa says, “Our
BMW), and many others including the brand is referred to as MINI with capitals to
hugely successful Austin Powers franchise, all
differentiate it from the original Mini. It is not Mini
helped to build its appeal.
Despite falling car sales during the 70s and Cooper – Cooper is one of our model derivatives as
80s, the Mini retained a huge hardcore fan is the Cooper S.”

marketingmix.co.za / vol 27 / issue 11/12 / 2009


Brand anatomy

Going back to our roots...


Celebrating 50 years, MINI has launched two special editions: MINI 50 Mayfair and MINI 50 Camden – available
in Cooper and Cooper S Hatch models.
The Mayfair offers high quality luxury materials and colour schemes reflecting the classic elements of this stylish
locale. It is available in Hot Chocolate metallic paintwork with light brown toffee metallic bonnet stripes and white
pin striping. Other colour options include Pepper White or Midnight Black.
The futuristic version – Camden – comes with exterior paintwork that is finished in White Silver metallic or
Midnight Black or Horizon Blue metallic.
The car boasts an in-car management system called ‘Mission Control’, which uses different dialogues according to
the function; seat belt warnings, door open or low fuel, which allows the driver to interpret and respond accordingly.

designers included a modern understated style, cheekiness,


vivaciousness and energy into what is an incredibly hi-tech
and premium 21st-century package. MINI represents
perfectly the birth of a modern classic, bridging the gap
from a much loved 60s icon to a new design original,” says Valle.
The introduction of the MINI Cooper, Cooper S,
Clubman and the Convertible has helped to round out the
offering and BMW is even looking at a ‘green’ MINI to
extend the car’s reach further to embrace an even more
diverse consumer market.
“MINI is a cosmopolitan brand and is seen as fun,
exciting, unique and, of course, cheeky – wherever you may
find yourself on the globe,” says Valle.
The marketing campaign around the launch of the
new-look MINI nine years ago was immense. It was built
upon decades of emotional attachment from devoted fans,
as well as created excitement for a new generation. In
keeping with its cult status, ad campaigns were clever and 37
quirky, a trait that continues to this day.
“The unconventional way of marketing fits very well SA celebrates the (small) MINI, big style
with the brand and it allows us to connect with our target
market on a unique level to create notable discourse. MINI SA celebrated its 50th birthday in style from 16 to 18 October 2009,
For example our fibreglass car executions – the first one activated by experiential agency VWV, in the small Free State town of Clarens.
was on the outside wall of the parking garage at Melrose
Arch, and is still used as a great example of guerrilla
General manager of MINI SA, Karen Valle, explains how MINI shifted into
marketing,” says Valle. party gear:
While marketing campaigns for MINI are developed “We have an internal litmus test for all of our events and advertising
globally, they are adapted to suit local markets. During the
executions. If we feel that another vehicle brand could conceivably host a
IAA car show in Germany 10-storey high images of the
MINI Clubman were projected onto the Frankfurt similar sort of event in the same location, or produce a similar
Messeturm. Other companies complained about the advertisement, then what we’re planning is not ‘ONLY MINI’.
campaign and it was pulled, but not before it had created
Clarens provided us with a unique opportunity to take what is essentially
huge publicity.
Locally, celebrations for MINI’s ‘Fifty Years of Cool’ an urban brand into a completely different environment, but one that you
campaign featured a fibreglass car in ice at the company’s could revel in given the fantastic roads for driving in the area. Combined
head office wall in Midrand and culminated in an event with ‘MINIacs’ attending from all over the country, we needed a central
held in Clarens.
“We are proud to adapt global campaigns that are locally
South African venue to allow our customers to truly experience the driving
relevant and we are particularly proud that we were excitement of their cars on the open road. Our main idea was for MINI to
recently recognised for our vernacular communications claim the town as its own for the weekend (which we certainly did, with
through the Pendoring Awards,” says Valle.
over 1 000 MINIacs and 300 MINIs gathered in Clarens), and to offer
With a limited marketing budget, MINI restricts its use
of traditional media yet still manages to achieve a our MINI fans an opportunity to have some fun!
disproportionate share of voice. TV ads are only flighted I don’t think that any other brand could have made this transition so
on M-Net and DStv and billboards (found to be highly
seamlessly and this made Clarens perfect! The weekend away was also
effective) are changed every two weeks. They are predominantly
found in suburbs as opposed to on major highways. used as a marketing tool. The 1 000 fans at our event communicated
“We ensure that we promote our products and brands in with more than 40 000 people about their experience in Clarens through
an ‘ONLY MINI’ way. All our communication has to live various social networks. This proves that social media definitely works for
up to it being unique, creative, humorous, exciting, as well
as innovative,” says Valle. 
us as part of our brand ambassador strategy.”

vol 27 / issue 11/12 / 2009 marketingmix.co.za


Afrikaans media

The Afrikaans market


p to 15 per cent of SA’s population speaks Afrikaans as a

U first language. The Northern Cape has the highest number


of speakers, followed by the Western Cape, Gauteng and
the Free State. The Eastern Cape, North West, Mpumalanga, “Not only is this market very lucrative, there is
Limpopo and KwaZulu-Natal have the lowest number of Afrikaans
speakers. “Even though the Afrikaans-speaking community also an underlying sense of pride among its
represents only a small number of the population, it is responsible
for 28 per cent of the country’s total household expenditure,” says speakers. This pride has facilitated
Eureka Zandberg, general manager: Advertising and Research,
Media24 Family Magazines.
The Afrikaans market is a strong and viable segment of the local
rejuvenation in the use of the language and
market; the language is still one of the largest official languages in
the country, with about eight million speakers. What’s more, has had a roll-on effect in the number of
research has found that Afrikaans-speaking individuals prefer to
receive information in their mother tongue. products available and the quality of
This segment completes the marketing puzzle. “Not only is this
market very lucrative, there is also an underlying sense of pride advertising in or on these products.” – Tim
among its speakers. This pride has facilitated rejuvenation in the
use of the language and has had a roll-on effect in the number of
products available and the quality of advertising in or on these Zunckel, OFM programmes manager.
products,” says Tim Zunckel, OFM programmes manager.
38
Newspapers
The period between July and September 2009 was certainly not the She continues to say: “Afrikaans magazines hold 31 per cent
best time for newspapers in SA as most experienced a decline in market share. When compared with the previous period, the total
figures. The latest ABC report reflects a decline in circulation advertising investment in magazines reflects a decline of 4.9 per
figures for all Afrikaans newspapers except for Die Son, which cent for the period September 2008 to August 2009 in comparison
experienced one per cent growth and Rapport which managed to to the advertising spend in Afrikaans magazines, which showed a
hold on to its position. decline of three per cent.

Red: subscriptions and single copy sales


Blue: total paid
Green: total circulation
Figures in brackets refer to the total circulation for the corresponding previous period.

Daily newspapers ABC figures for period July to September 2009


Beeld 90 101 90 101 93 804 (104 141)
Son 117 352 117 352 117 352 (104 162)
Die Burger 71 045 71 045 74 322 (80 004)
Son 117 352 117 352 117 352 (104 162)
Volksblad 25 498 25 498 26 356 (27 699)

Weekend newspapers ABC figures for period July to September 2009


Beeld Saturday 83 715 82 715 83 347 (89 281)
Die Burger Saturday 93 683 93 683 94 177 (97 647)
Rapport 273 204 273 204 295694 (296 218)
Sondag 23 219 23 219 23 219 (47 628)
Sondag Son 55 126 55 126 55 126 (new member)
Volksblad Saturday 22 428 22 428 22 938 (24 019)

marketingmix.co.za / vol 27 / issue 11/12 / 2009


Afrikaans media

Globally, print is showing strain, “everybody is feeling the


recession – some individuals are feeling it more than others, it
would be a bit presumptuous to say that the Afrikaans market has Radio
felt it any more or any less than the other markets,” says Neil van RAMS figures for October 2009 16 years +
Schalkwyk, strategist, The MediaShop. listeners past seven days (000s)
While the announcement that SA is ‘officially’ post recession, Algoa 739 000
the road to recovery will be a litmus test for print media with OFM 485 000
advertisers’ reaction vital to the health of the industry. For 94.2 Jacaranda/RM/FM 2199 000
Afrikaans media, the fight is not only among themselves but also 94.2 Jacaranda/RM/FM 2231 000
against the English media for advertising spend, airtime, readership
RADIOKANSEL/RADIO PULPIT 204 000
and audiences. According to Alain de Jongh, strategist, The
RSG 1737 000
MediaShop, “Afrikaans media has always positioned itself as a
credible source of information, focusing on its core strength which
is news reporting. This media has weathered the global financial RAMS figures for October 2009 15 years +
storm and is still going strong and looking towards an upswing in listeners past seven days (000s)
the market.” Algoa 756 000
OFM 502 000
Magazines 94.2 Jacaranda/RM/FM 2263 000
At the beginning of the global financial crisis it was expected that 94.2Jacaranda/RM/FM 2294 000
the magazine industry would be the most affected as consumers’ RADIOKANSEL/RADIO PULPIT 206 000
buying power for ‘luxury purchases’ became limited. Even though RSG 1759 000
2008 had its casualties, 2009 hasn’t claimed any titles, “We are not
aware of any Afrikaans magazines closing down in the past year.
All the magazine titles are under pressure and the fragmentation of
the magazine industry exacerbates the situation,” says Zandberg. country and, according to Zandberg, still has a 40 per cent
Last year the Afrikaans travel lifestyle magazine, Mooiloop, closed advertising share of the Afrikaans magazine market. “These figures
its print title and retained its online operations. The publisher cited prove that advertisers trust Afrikaans magazines to communicate
intense financial pressure and lack of advertising support as some their message to their target markets. An Afrikaans magazine does
of the reasons for closing the magazine down. a particularly good job at reaching its target as, of the 15 million 39
Huisgenoot is still among the leading consumer magazines in the magazine readers in SA, 33 per cent is Afrikaans,” says Zandberg.
Afrikaans media

Radio
The digital age has resulted in broadcasting on-air, online and Online Nielsen Report 2009 second quarter
mobile through cellphones. The potential of converging online and www. opa.org.za
radio is vital to the marketing mix. It’s interesting to see how this
Publisher average unique browser average page impression
mix works in reality. Take OFM, for instance, which targets 25–49
Beeld 382 445 11 010 139
year olds in LSM 7-10 across central SA. Its RAMS figures for
Die Burger 192 915 3 806 373
October 2009 showed 502 000 listeners in the past seven days. “For
the same period as the RAMS our website had 1.3 million page Rapport 111 516 1 450 477
views with an average time of six minutes and 30 seconds spent on Volksblad 54 213 579 846
the site,” says Zunckel. RSG 53 987 882 404
For marketers and media planners, regional radio stations which
are part of the same group, such as Jacaranda, ECR, OFM, Algoa
and Heart, allow for easy targeting of both English and Afrikaans audiences through the use of common campaigns. “The Sports
Cage concept, for example, uses common content and sponsorship
across the five stations for audience reach and offers the client the
value of national advertising,” says Zunckel.

Media24 recently launched South Africa’s first Online


Beeld’s website is the leading Afrikaans newspaper website
Afrikaans breaking news site, Nuus24.com, according to the latest Nielsen online ranking report. Media24
recently launched South Africa’s first Afrikaans breaking news site,
Nuus24.com, built on News24’s formula of publishing breaking
built on News24’s formula of publishing
news. It publishes local, international, sport, technology,
entertainment and (business news supplied by Sake24) news.
breaking news. Nuus24 also includes an Afrikaans version of the citizen
journalism portal, MyNews24, allowing users to upload photos;
video clips; and blog or post comments. 

40
Red: subscriptions and single copy sales
Blue: total paid
Green: total circulation
Figures in brackets refer to the total circulation for the corresponding previous period.

Magazines ABC figures July to September 2009


Onthaal Idees 19 076 19 076 19 076 (new member)
Huisgenoot 304 655 317 880 317 880 (318 128)
LIG 34 112 34 112 35 986 (32 959)
Taalgenoot 61 491 61 491 61 868 (64 466)
Landbouweekblad 42 193 42 193 42 193 (43 031)
Pols 50 507 50 507 50 507 (new member)
Die Tuiner 18 175 19 255 20 889 (19 174)
Tuis 60 606 63 062 63 529 (73 101)
Avokado (Jan-Jun) 22 539 22 539 24 984 (29 571)
Wiel 9 681 9 681 10 724 (12 495)
Weg 91 572 91 649 91 649 (91 699)
Wegsleep (freq change) 33 576 33 576 33 576 (changed
Finesse 84 747 89 079 89 519 (90 985)
Idees 72 132 72 132 72 932 (82 464)
Leef 40 118 41 570 46 194 (45 135)
Rooi Rose 109 653 109 686 114 611 (96 042)
Sarie 123 776 125 564 129 578 (107 292)
Vroue Keur 78 543 78 543 78 728 (84 428)
VISI (Jan 08-Dec 08) 15 450 15 455 16 657 (19 895)
Selfdoen Tuis 24 052 24 052 24 052 (new member)
(Jul 08-Jun 09)
Sarie Kos (Jan 08-Dec 08) 49 398 49 422 49 566 (new member)

marketingmix.co.za / vol 27 / issue 11/12 / 2009


ADVERTORIAL

Could reducing print load lead


to a paperless office reality?
A
s an increasing number of businesses move to a higher rate of
electronic communications, one could very easily make the
assumption that the reliance on paper, and the use thereof,
has started to decline. With this in mind, many feel the paperless office
is now fast becoming a reality.
Surely, as more business use e-mail, the internet and are more
inclined to save their documents electronically, the use of paper and
printing products has dwindled. Unfortunately, that assumption is
wrong! But this doesn’t mean all is lost.
There are various ways for businesses to go about improving the

before printing – checking that documents are laid out the way they
should be before printing, including reducing the font size without
detracting from the quality of the presentation; working more
collaboratively online when reviewing documents; deciding on the best
way to deliver a document; using both sides of the paper when
printing; and using recycled materials where possible.
In the end, the best way to reduce waste associated with printing is
to avoid unnecessary prints in the first place. In the real world, though,
100 percent efficiency is always a challenge, which is where recycling
comes into play. Reusing unwanted paper instead of throwing it away
can make the world of difference. Instead of throwing away old
efficiency of their printing environments, save money and reduce the
non-confidential documents, why not shred them and reuse as
overall environmental impact. But why would a company like HP
packing material? Recycling isn’t just a matter of installing recycling
encourage companies to print less? The answer is simple: HP is
bins, although this is a good start. Companies should also encourage
committed to reducing the impact its products have on the environment
a culture where recycling is part of doing business.
and wants people to achieve more with their printing. For businesses,
Last but not least, it’s considered good business practice for
that means streamlining productivity and creating greater value
through printing – not consuming resources and generating waste. companies to encourage staff to turn off desktop printers when leaving

But, let’s make one thing very clear: paper isn’t the only contributor at the end of the day, and ensure that equipment not used on a daily
to waste. Printers use energy in varying degrees, even when left in basis is switched off rather than left on stand-by. In light of this, it may
standby. Ink and toner are often wasted in poorly designed printing be better business practice to adopt a centralised strategy of using
systems, and inferior quality cartridges print fewer pages and consume departmental printers and copiers.
more resources. Poorly designed cartridges and printers can be In many instances, however, a balanced deployment strategy works
difficult to recycle, while inefficient paper, ink and energy consumption best by using multifunction devices (MFDs) and single-function devices
is not only bad for the planet, but bad for business too. where appropriate. This approach can improve printing efficiency,
It goes without saying that people will continue to print documents, performance and cost, while dramatically increasing device utilisation
even when they know it’s better to simply review them electronically. It and return on investment. Employee productivity could also be
seems we will never fall out of love with paper. However, there are enhanced by moving advanced functionality closer to users, helping
many ways businesses can reduce their reliance on paper by thinking them achieve more with less.

For more information on the HP Print Station


programme contact HP’s partner ACT on
(+27) 11 695 1600 or
HPPrintStation@ACT3.co.za.
Visit www.hpprintstation.com to
find out about your nearest HP PSP store.
Expert opinion

The pink market in South Africa:


an untapped gem?
here is the pink pound and the pink  The element of surprise triggers the interest

T dollar, but what is the pink rand all


about? What exactly is the purchasing
power that the pink rand holds? What is the
of the pink market, and is especially relevant
considering the market is perceived to be
‘early adopters’ and is often at the forefront,
pink market really about? if not actually spearheading, new trends
The pink market in South Africa consists  The Internet is an important marketing

of gay lesbian, men, women, bisexuals and medium, not only in securing privacy and
transsexuals, and is commonly referred to as anonymity, but also because it brings together
the LGBT market. It is independent, both people of similar mindsets who might
financially and practically. According to otherwise be geographically scattered and
strategic planning and research specialist Original socially isolated
Insight Learning, the pink market is an  Businesses that sponsor or participate in gay

extremely social one. Activities are nothing community events enjoy a strong level of
out of the ordinary, ranging from clubbing and loyalty among gay consumers
shopping to gym, movies and dinner parties.  Gay people are brand loyal, support

When the pink market goes shopping, they businesses that are ‘gay friendly’ and are
spend big money, and fashion is a top priority. responsive to advertising that acknowledges
Gay and lesbian couples have discretionary their preferences
income above the national average. Plus, these The pink market operates within a network
are households earning a double income, with of similar minded people where product and
few or no children and a tendency to prefer service experiences are communicated to
42 brands and labels. These are therefore house- friends and partners. Therefore businesses
holds with very high disposable incomes that need to take note that word of mouth is an
could be used for travelling, shopping and extremely credible marketing tool in the gay
other luxuries. and lesbian community.
The pink market spends the majority of Create a desire among your customers (pink
its income on products relating to travel, or straight) to make repeat purchases by
financial services, motor vehicles, fashion and focusing on these aspects: the delivery of
entertainment. The majority of this market professional service to customers; the speedy
(65 per cent) resides in the LSM 8-10 category; handling and resolving of enquiries and
over 80 per cent aged over 25 own their own complaints; the creation of an aesthetic
homes and over 15 per cent own a second home. environment within which a service is
In addition, over 70 per cent take more than delivered to the customer (this aspect includes
five power breaks in upmarket settings; over the appearance of employees); and the
25 per cent are self-employed entrepreneurs rewarding of loyal customers through
and over 30 per cent have a tertiary education. structured loyalty programmes
Since 2001, the pink market in SA has become Communicate to the pink market via media
more aware of whether businesses that they that they identify with such as:
buy from have instituted non-discrimination
and domestic partner policies. Magazines
The lesbian component of the pink market Wrapped magazine
in SA earns (as a whole) more than gay men, Mambaonline.com
heterosexual men as well as heterosexual Mambagirl.com
women, but this market is mostly overlooked Pink Pages
by marketers. Exit newspaper
Marketing tips to secure the interest of the The Pink Tongue newspaper
pink market
 Ensure that your product or brand is Radio
Dr. Mornay Roberts-Lombard something the pink market wants to be Bravo Brava radio 2000
senior lecturer, department of associated with
Marketing Management, University of  High-quality service is important to secure The pink market is very social; gays are out
Johannesburg customer loyalty and about more often and having more fun than
(011) 559 3031  The delivery of quality products is their straight counterparts. This is something
mornayrl@uj.ac.za non-negotiable, and something they are marketers need to take cognisance of more
willing to pay for pertinently. 

marketingmix.co.za / vol 27 / issue 11/12 / 2009


Expert opinion

Christmas in June
o what’s top of mind right now? Relief expectations of our guests. Have we

S that we’ve made it through the end of


a really tough year? Or that Christmas
is around the corner? – a magical, wonderful
communicated to our people well enough,
do they understand their role, do they
know how to create individual moments
time of events, full of preparation, giving that carry the spirit and expectations of a
and magical moments? great African World Cup?
I believe that we should be comparing Are we working and preparing great
our preparation for Christmas with our ambassadors? People who create moments
preparation for our ‘Christmas in June for our guests? People who understand
2010’, the 2010 FIFA World Cup: the their role in living the spirit and giving the
greatest event in southern Africa’s historic service to our World Cup guests, 2010
calendar. But what is it about this end of style? It is not difficult to do, it just needs
year event and the FIFA World Cup event the same energy and effort we have poured
that we can compare? into preparing the stadiums.
Let’s be honest. Christmas is the Just as we remember that Christmas is
pinnacle of the marketing world’s success. about the preparation of all the external
Marketers have created its brand, created its factors, it is also about the spirit of
icons, promoted its music, celebrated its giving and the creation of moments for
behaviours and captured its spirit of giving people to show that they care. Christmas
and joy. is a time where everyone becomes a
Christmas is a time when we prepare our brand ambassador, everyone has the
home for guests and family, prepare food ability to demonstrate that they care and
and entertainment, dress the tree, bring out carry the spirit of giving in their attitude 43
the decorations and sing the carols. Now and behaviour.
let’s get real – is Christmas just about the So it has to be for the 2010 FIFA World
tree, gifts, food and decorations? Cup. It is a time in Africa’s calendar where
What happens if all this is prepared, the all Africans are ambassadors for the spirit
guests arrive and there are no people to of the World Cup. In creating wonderful
welcome them, no personal connection to memories for our guests, demonstrating
make the caring spirit come alive? What that we have not only prepared the
happens when Father Christmas has a bad stadiums, food and decorations but
attitude, and his behaviour doesn’t liven up that we have also prepared the moments
to the spirit of Christmas? What happens to remember.
when all the presents are ready but there’s
nobody to give them with love and a smile; Our call to action:
to say I care and I love you? Christmas is Now is the time to start preparing
not about the money but the ‘moments’ ourselves as the ambassadors for 2010.
spent, the memories. Ambassadors that will live the spirit of this
So it is with the 2010 FIFA World Cup – event before during and after the event,
our African Christmas in June. The ensuring that our guests arrive safely, stay
stadiums are being prepared, the food and and keep coming back. I believe that the
drinks are being ordered, the brands are tools to build our ambassadors are not yet
putting their World Cup hats on and the in place and are not entrenched in the
decorations are hung. But what will happen public domain.
if people are not ready, the wrong type of It is the responsibility of each and every
people greet our visitors at the door – ie business, municipality, government department,
Father Christmas with a bad attitude? Being hotel, restaurant and all individuals to
ill prepared can unfortunately can make the step-up and start building our 2010
time and money spent on beautiful gifts ambassadors for now and into the future.
seem worthless. Start by creating the 2010 vision and
Our challenge in preparing for Christmas essence. Communicate and demonstrate
is the same as our challenge in preparing desired behaviours. Use our music, our
for the 2010 FIFA World Cup. The songs and our rainbow people to create,
Stuart Woolmington
challenge lies, not in preparing the correct live and breathe positivity into the
MD of the win Wingroup
infrastructure for 2010, but preparing South necessary behaviours that make up our rich
stuart@winwingroup@woolworths.co.za
Africans to live up to the spirit and South African tapestry. 

vol 27 / issue 11/12 / 2009 marketingmix.co.za


Expert opinion

Africa’s online growth opportunities


y recent attendance of the Pan Projections on growth potential are

M African Media Research


Organization (PAMRO)
Conference in Nairobi, Kenya highlighted the
looking very lucrative as market
penetration is standing at 30 per cent with
some African countries having broken the
immense opportunities in online advertising 100 per cent barrier. With superior national
in Africa, in light of the recent online coverage and large subscriber bases,
bandwidth developments in the continent. Africa’s mobile network operators have
New international fibre links into Africa come to own market dominance and hence
have seen the cost of broadband plummet been labeled as the ‘new incumbents’.
by up to 90 per cent and online communi- AMPS research done in Africa indicates
cation has proven itself to be the fastest that online users are predominantly male,
growing medium in Africa. With Seacom’s which can most probably be ascribed to
fibre optic cable into Africa, Internet culture. However, this leaves us with the
broadband is becoming cheaper – gap to motivate for more female users.
encouraging consumers to log on. The Individuals are accessing the Internet mainly
Southern and East African markets have from work stations, universities or Internet
been serviced by Seacom since July 2009, cafes. This reflects the education level and
gearing the countries for increased broadband income group of Internet users.
demands in 2010 with South Africa’s 2010 In South Africa there are already more
FIFA World Cup. Apurimac has also felt 3G/HSPA mobile broadband users than ADSL
the impact of price cuts recently with our subscribers and mobile data revenue is
purchase of data. Our costs decreased growing at around 45 per cent pa. SA has
exponentially from 9c to 4c per Megabyte. some of the lowest data costs in the world,
Kenya Data Networks (KDN), a encouraging people to go online. Our
subsidiary of Altech has reflected Seacom’s Yahoo! (m.yahoo.com) and TEAMtalk
90 per cent price slash throughout East Media (f365.co.za) mobi (mobile) sites 45
Africa. KDN’s fibre optic network and the show an exponential growth, with audiences
undersea cables will provide more affordable multiplying monthly.
international bandwidth to many East African What struck me from the two-day
countries, which until now have been PAMRO conference is that the entire first
reliant on expensive satellite bandwidth. day was dedicated to digital advertising and
As with online bandwidth development, media. This goes to show that mobile and
telecommunication in West Africa has online marketing are mediums that can no
received a major boost from the arrival of longer be ignored by African advertising
the new submarine fibre optic cables. It’s agencies and marketing managers, particularly
reported that Nigeria overtook South if they want to talk to the high income
Africa in early 2008 to become the market. Now is the time to start investing
continent’s largest telecom market with in online advertising, especially since the
over 44 million mobile subscribers. While 2010 FIFA World Cup lurks at our doorstep
growth prospects in the region’s mobile and the world is watching us online.
voice market are still excellent, the declining While the shift from traditional to online
average revenue per user (ARPU) levels are advertising is being driven by improved
forcing operators to convert into providers performance of online advertising, the
of mobile and broadband services. content and relevance to the recipient has
Africa’s poor fixed-line infrastructure become the success factor.
has made way for mobile networks playing Broadband will also result in the
an increasingly important role in Internet increased use of rich media advertising,
service provision. In this low ARPU region including video (which will become viewable
the introduction of a third generation in real-time). Having the right technology
broadband service, in a number of markets, and systems in place will become key.
was a much welcomed new revenue Seacom’s enormous capacity now enables
stream. Cellphones represent around 90 East and South Africans to enjoy high demand
per cent of all telephone lines in Africa, services such as high definition television
and the subscriber base is growing steadily (HDTV), peer to peer networks, Internet
at around 50 per cent per annum with protocol television (IPTV), and surging Will Green
growth curves flattening in more mature Internet demands. And although the online managing director, Apurimac Media
markets. As a result operators are competing consumer makes for roughly only 0.1 per (021) 446 6474
more aggressively on price, quality of service cent of the total advertising spend in will.green@apurimacmedia.com
and through new service introductions. Africa, the list of capabilities is endless. 

vol 27 / issue 11/12 / 2009 marketingmix.co.za


Liquor marketing at-retail

Liquor marketing 101


arketing Mix’s Liquor Marketing Legislation will impact the way liquor is

M Workshop looked at impending


legislation and how it will affect
liquor marketing at-retail, in particular.
marketed and will likely impact what
happens on the retail floor. Scott Adcock,
MD, Visual Fusion, says that brands need
The World Health Organization (WHO) to understand the variables of liquor
has raised a few concerns around alcohol marketing at retail. There’s the alcohol
consumption, says Odette Roper, CEO, brand and there’s the store and, of course,
Association for Communication and the shopper. Understanding purchasing
Advertising (ACA). These include the rate drivers is key as is growing familiarity with
of premature alcohol-related deaths; retailers’ individual parameters and needs.
violence linked to alcohol abuse; harm to The only two aspects that really count in
people other than the drinker; harm caused retail marketing are relevance and reward,
during pregnancy; and so on. The World say Felix Kessel and Vaughan Owen,
Health Assembly met in 2008 and passed a co-founders, Owen Kessel, and given that
resolution that drives a global strategy to 99 per cent of promotions go unnoticed,
Shopping channels are reduce alcohol abuse and consumption, and perhaps the annual promo calendar is not
address these concerns. working. Ninety per cent of the people
realising that their A 10-point AFRO Action Plan has been
put into place locally, with the four major
who win promotions are those who
look out for them and may not be in
points being: the target market.
relationships with  Regulate availability of alcohol Shopping channels are realising that
 Restrict the sale of alcohol their relationships with consumers are
consumers are important  Regulate marketing of alcohol important too. Category management
 Increase taxes on and prices of alcohol. is no longer the domain of the brand and
46 too. Category The ACA believes new regulation will soon, it will be the fight for floor space,
have a negative economic impact (including says Kessel. Brands need another avenue
management is no loss of revenues and jobs) and proposes that
a more constructive solution to the alcohol
off premises, and need to offer real value to
the outlet be it a bar or a store. Real value
problem is the pooling of resources across is about bringing them customers and
longer the domain of industries to educate South Africans about giving them an experience. The key is
alcohol abuse. reward (value and relevant experience).
the brand and soon, it Government will deliberate all of this Another great tool for liquor marketing
until the 2010 FIFA World Cup (Budweiser is word of mouth (WOM). Jason Stewart,
will be the fight for is a major sponsor), says Roper. The biggest MD, Have You Heard, says that WOM is
issue with the legislation is that it clamps the honest exchange of information, and
down on the media used for communications. at its most powerful is the passing on of
floor space.” Felix
Kessel, co-founder, Liquor advertising tips
Stefan Vos, Stefan Vos Marketing Regulation Advisors, is familiar with the Advertising Standards
Owen Kessel Authority of South Africa (ASA) code, and shares these tips.
 Do not feature or foster irresponsible drinking.
 Brand loyalty is about being loyal to a brand, rather than simply drinking more.
 Any advertising should not be directed to persons under the age of 18 years. But in your advertising,
avoid using anyone under the age of 25.
 All alcohol brands must state that they are ‘not for sale to persons under the age of 18’. There can
be no variation in this wording, and the size of the wording must be proportionately increased or
decreased as the case demands. For TV adverts, it must be between eight and 10 per cent of the
screen image. On the outdoor landscape, the size depends on the sheet size.
 Do not create advertising that shows improper nudity, and avoid associating drinking with sexual
success.
 If a drink contains less than 0.5 per cent alcohol, then there is no need to disclose its alcohol
content. However, there is an issue with this, because by not stating that there is alcohol in the
product (even trace amounts), a brand is duping the consumer.
 Don’t create the impression that a non-alcoholic beverage is alcoholic.

marketingmix.co.za / vol 27 / issue 11/12 / 2009


Liquor marketing at-retail

recommendations. One in three Russell Stromin, MD, Strike Media, says


recommendations is acted on, he says. that mobile can be used to interact with the
Within the alcohol industry, recommendation consumer at the tavern or in the store, to
through WOM is not huge; usage is help the liquor brand stand out. For
generally based on trial, which means there example, an SMS campaign to launch a beer
is much opportunity still to be had. brand sees the unique code under the
Liquor brands need to understand bottle top (proof of purchase), sent to a
individuals’ highest social desires and drive short code to enter a competition. The
aspirations linked to this, and create unique unique code can contain info, such as
and differing platforms for engagement. which region the consumer is in or
It’s also about getting the right people whether the beer went to a hotel,
drinking and endorsing your product restaurant, bar, store, etc. Great for the
through rituals and stores (brand experiences). brand and the consumer.
Don’t brand the hell out of it – you’re the MMS is hot, says Stromin, as it allows
vehicle not the destination and do build a for a far richer user experience. For
sustainable relationship – it’s a marriage, retailers, mobile can also be used to drive
not a one-night stand. volumes and encourage repeat purchases.
The township is the real life Facebook, Another way to drive sales of liquor
says Stewart; it’s important to understand
how to leverage that. Who are the township
brands is to create premium branding and
pack design. Adam Botha, creative director,
Consumers are
influencers? “The guys that have money,” Switch Design Group, believes that form is
says Stewart. essential in driving brand choice. To get rethinking fundamental
With more than three million connected noticed, disrupt the category, says Botha,
trendsetters frequenting the laid-back and consider how the consumer opens and values, and we are
social environment of the township packages your product. Colour is also key 47
taverns, it’s essential that brands do their (or the lack of it), as is the collective seeing a move
best. Siwe Nyuswa, director, Provantage impact of the product on shelf (how do all
Tavern Media, says that shebeens are not the bottles or packs look on shelf).
the same as taverns. A shebeen is more Secondary packaging (a fancy box or tin)
towards in-home
informal. Taverns, on the other hand, gives the impression of premiumisation and
are more stylish, and this is where the becomes collectible. consumption. They are
young black urbanite can find expensive Shane Allchin, shopper insights manager,
beer brands and whiskies. Socially, it’s all Brandhouse, says that alcohol remains a trying to replicate the
about being seen (having the car, the small luxury that shoppers want to protect
phone, the look). and they are generally less likely to trade ‘out-on-the-town’
Nyuswa refers to the YBFs (young, down on this category. Price is the indicator
black and fashionables). These are males of quality; the lower LSM segment is
and females, LSM 6-8, aged 18-40 (with the trading down, but the middle LSMs are
experiences in their
sweet spot aged between 25-35), who visit looking for value (not necessarily price
the taverns three to four times a month, related). At the top end, there is little impact, homes.” – Shane
and spend an average of one hour 35 says Allchin. Brands need to have a three-phase
minutes there. Promoters in the taverns strategy, he says; speak to the aspirational Allchin, shopper
must look sexy, says Nyuswa. The tavern top end as well as the value-hunter in the
consumer has money to spend and doesn’t
mind spending it. WOM is huge here, and
middle and the price-sensitive lower end.
Consumers are rethinking fundamental
insights, manager
activations can drive this. Trial is also useful values, and we are seeing a move towards
for encouraging repeat purchases. in-home consumption, says Allchin. They Brandhouse
Understand that taverns are very are trying to replicate the ‘out-on-the-
controlled environments, and the owners town’ experiences in their homes. So
will not let brands in to cover their walls consumers may well trade up to achieve
with posters. Light boxes, with beautiful this, and this is where there is opportunity.
lifestyle branding, are great for enhancing Alcohol brands need to make their
the environment (also a must!) “Befriend products easy to find and shop; alcohol
the tavern owner, the waitrons and bar solutions (DIY cocktails, for example) are
people. They are going to become brand key. As are in-store experiences that reflect
ambassadors and they need to know more these new at-home occasions, and show
about your product than your promoters,” them how they can achieve that great event
says Nyuswa. at home. 

vol 27 / issue 11/12 / 2009 marketingmix.co.za


King III

Be warned!
udge Mervyn King recently gave details on the implications King makes a comparison of how Nike and Coca-Cola have

J of the latest report in good corporate governance to


executive marketers at a Marketing Mix breakfast briefing
in Johannesburg.
reacted to stakeholders differently. Nike’s brand equity tumbled
through the late 1990s as reports emerged about poor working
conditions at its supplier factories in Vietnam and China. “Such
The latest King report is out and will replace King II in reports can cost billions in damage to brands,” says King. Nike
March 2010. King III elevates communicators to strategic lost customers and market capital from subsequent stock-price
positions in the workplace, removing the postmaster image declines.
associated with this profession. The report gives full recognition After realising the impact that its operation had on the
to the role played by communicators in the pursuit for profits. environment, Coca-Cola reacted and pledged to fix its water
King III requires companies to embrace a participative and footprint by improving water efficiencies within its operations.
stakeholder inclusive approach; the board must identify its As a result, the brand didn’t suffer because the company
important stakeholders and proactively manage the relationships. reacted early.
Promises and guarantees made to customers must be followed,
customer complaints procedures must be fair, efficient and
written in a language that customers can understand.
Promotion documents must be written fairly, marketing
material and promises are expected to be just and be understood
by ordinary customers. Internal marketing and motivating staff
is also vital, workers are supposed to live up to standards set by
What communicators need to take
the company’s governing codes. “A stakeholder-inclusive
corporate governance approach recognises a company has away and work with from the report
many stakeholders that can affect the achievement of its
48 strategy and long-term growth. Corporations should take is that communications plays a vital
account of the fact that stakeholders’ interests could change
and so re-examine the interests of such stakeholders at
appropriate levels,” says King.
role both internally and externally, and
The challenge is now on corporate communication managers
and practitioners to deliver on expectations. “They are now it requires skilled personnel so that
recognised as being strategically important for the sustainable
existence of business. Practitioners are now a part of strategic there can be a clear understanding of
management and good governance practices, which gives
stakeholder relationship management and the corporate messages at all levels.
communication function legitimacy in a corporate,” says King.
King III encourages a balanced approach between business
and its stakeholders, pro-actively focuses on stakeholders with
legitimate expectations on how managing stakeholder relationships
will contribute towards transparency and enable them to
determine the value of an organisation.
The significance of reporting annually on how a company has It is the responsibility of managers to assist in embedding a
performed both positively and negatively affects the economic clear understanding of the company’s values, vision, mission and
life of the community it aims to serve. In addition, emphasis objectives. External communication must be aligned with
has been placed on the requirement to report the company’s internal communication. Stakeholder relationship management
intentions to enhance positive aspects and eradicate any needs to be developed and maintained through a process of
possible negative impacts on the economic life of the community sound business practice that involves marketing and public relations.
in which it operates. What communicators need to take away and work with from
“There is an increased realisation that an organisation cannot the report is that communications plays a vital role both
continue to operate without regard for society, the environment internally and externally, and it requires skilled personnel so that
and stakeholders. It obtains its licence to operate from society there can be a clear understanding of messages at all levels. The
and the environment. In the short term an organisation can be new professional designation Chartered Marketer is trying to
profitable and ignore its stakeholders, the needs of society and help professionals get ahead in the workplace. “It is pitched at a
the environment. It can even operate in an unethical manner, senior level and requires preparation through workshops and an
but that is not sustainable. An organisation without legitimacy assessment of both knowledge and practical application. That is
in society needs to deal with the power of stakeholders that are followed by compiling a portfolio of evidence and a board
dissatisfied with its activities which leads to business failure,” exam,” says Chris de Villiers, executive director of the
says King. Marketing Association of South Africa. 

marketingmix.co.za / vol 27 / issue 11/12 / 2009

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